LONDON – European markets were slightly higher on Wednesday morning as investors monitored economic data and corporate earnings.
The pan-European Stoxx 600 fell 0.1% above the flat line in early trading, with technology stocks rising 1.2% while telecommunications sliding 0.6%.
Shares in Europe received a slightly positive hangover from Asia-Pacific, where Chinese technology stocks listed in Hong Kong bounced on Wednesday after 12 major companies indicated compliance with monopoly laws.
On the outside, the futures contracts linked to the major indices changed little in early trading on the futures market, after the S&P 500 closed at a new record high. Overseas investors will be looking for some big earnings releases on Wednesday, with banking giants JPMorgan, Goldman Sachs and Wells Fargo all having to report.
U.S. health officials on Tuesday recommended stopping the distribution of Johnson & Johnson’s Covid-19 vaccine after six women under the age of 50 developed rare blood clots after receiving the vaccine. Johnson & Johnson announced that it would delay the roll – out of the vaccine in Europe, while South Africa also suspended its use.
Back in Europe, Credit Suisse on Tuesday told investors that its $ 2.3 billion loan was exposed to ongoing uncertainties surrounding finance firm Greensill Capital.
The chief economist of the Hawkish Bank of England, Andy Haldane, will step down from his various roles at the central bank after his June meeting for the Monetary Policy Committee.
On the earnings front, French luxury goods group LVMH on Tuesday suffered a sharp decline in earnings in the first quarter, bolstered by Chinese and U.S. demand for Louis Vuitton handbags and Dior products. LVMH shares rose 2.7% in early trades.
German software giant SAP slightly increased its revenue outlook for 2021 on Tuesday after earnings showed strong growth in cloud sales in the first quarter, pushing equities up 2.7%. Compatriot plastics company Covestro has also increased its profit outlook after improving margins, meaning its share adds 2%.
UK supermarket chain Tesco reported a 14.7% drop in annual profit before the clock, although sales remained resilient. Tesco shares slipped 3.5% to the bottom of the Stoxx 600 in early trading.
Meanwhile, budget airline EasyJet said it would expect a fiscal headline loss of between £ 690 million ($ 950.6 million) and £ 730 million before the first half, but predicts an increase in flights from the end of May. EasyJet shares added 3.5%.
At the top of the European blue-disc index, Galapagos climbed 4% after Barclays upgraded the Belgian pharmaceutical company’s stock to ‘overweight’.
As for the data, the industrial production figures in the eurozone for February should be in London by 10:00.
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