Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

European stock futures mixed; weak sentiment helped by tech earnings

Published 2023-04-26, 02:20 a/m
© Reuters.
EUR/USD
-
MSFT
-
HSBA
-
LLOY
-
NWG
-
DB1Gn
-
DANO
-
SAN
-
GOOGL
-
EMG
-
DAST
-
DE30
-
GC
-
LCO
-
UK100
-
CL
-
F40
-
FRCB
-
SCBFF
-
GOOG
-
UBSG
-
RO
-

Investing.com - European stock markets are expected to open mixed Wednesday, with banking worries returning to the fore even after strong earnings from a couple of U.S. tech giants.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.4% lower, the FTSE 100 futures contract in the U.K. fell 0.2%, while CAC 40 futures in France climbed 0.3%.

Swiss lender UBS (SIX:UBSG) and Spain’s Santander (BME:SAN), the eurozone’s second-biggest lender in terms of market value, disappointed the markets with their quarterly earnings results on Tuesday.

Across the pond, First Republic Bank (NYSE:FRC) stock slumped after revealing $100 billion in customer withdrawals last month, fueling concerns for the whole U.S. regional banking sector. 

Back in Europe, U.K. lender Standard Chartered (LON:STAN) is scheduled to release its numbers Wednesday, paving the way for earnings from the likes of HSBC (LON:HSBA), Lloyds (LON:LLOY) and NatWest Group (LON:NWG), all of which are due to report earnings in the coming weeks.

Away from the financial sector, Danone (EPA:DANO) raised its 2023 sales growth outlook after it reported higher-than-expected first-quarter revenue on Wednesday, with the foods company able to raise prices in the face of high raw materials and energy costs.

Swiss healthcare company Roche (SIX:RO) reported a 7% drop in first-quarter sales on falling demand for its COVID-19 therapies and diagnostics kits.

Earnings are also scheduled Wednesday from the likes of Deutsche Boerse (ETR:DB1Gn), Man Group (LON:EMG) and Dassault Systemes (EPA:DAST).

Equity markets had received a boost overnight as first-quarter results from U.S. tech giants Microsoft (NASDAQ:MSFT) and Google owner Alphabet (NASDAQ:GOOGL), released after the closing bell on Wall Street, beat market expectations.

On the economic data front, the forward-looking German GfK consumer sentiment index came in at -25.7 for May, an improvement from the revised prior reading of -29.3. 

There are also a number of ECB policymakers scheduled to speak later in the session, including Andrea Enria, Kerstin af Jochnick and Luis De Guindos, who could offer clues as to the future path of the central bank’s monetary policy.

The European Central Bank is widely expected to lift interest rates again in early May, with the main open question being the size of the move, a quarter- or a half-point step.

Oil prices rose Wednesday, bouncing after the previous session’s sharp losses, after falling U.S. fuel inventories pointed to resilient demand in the world’s largest oil consumer. 

Data from the American Petroleum Institute, released late Tuesday, showed that U.S. crude inventories fell by just over 6 million barrels last week, more than the expected 1.7 million barrels, while gasoline inventories fell 1.9 million barrels.

By 02:00 ET, U.S. crude futures traded 0.9% higher at $77.77 a barrel, while the Brent contract climbed 0.8% to $81.24.

Both benchmarks dropped more than 2% on Tuesday, falling to levels seen before the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, announced an additional output reduction to start in May. 

Additionally, gold futures rose 0.1% to $2,004.95/oz, while EUR/USD traded 0.1% higher at 1.0987.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.