Stock markets across Europe rebounded after Chinese markets bounce back following Monday’s plunge
European stock markets are set to open higher Tuesday, helped by the Chinese markets rebounding after Monday’s plunge, although disappointing guidance from brewer Carlsberg was a fresh reminder of the risks associated with the coronavirus.
Stock markets in Europe had taken a downturn as the economic impact of the Chinese virus is being seen across the globe.
At 02:05 ET (0705 GMT), the DAX futures contract traded 107 points, or 0.8% higher. France’s CAC 40 futures were up 41 points, or 0.7%, while the FTSE 100 futures contract in the U.K. rose 62 points, or 0.9%. Futures on the pan-eurozone Euro Stoxx 50, climbed 29 points, or 0.8%.
Carlsberg on Tuesday reported operating profit for the second half of the year that was broadly in line with expectations but the brewer said it expects to deliver only mid-single-digit organic operating profit growth in 2020, down from last year.
The country’s central bank has tried to mitigate the economic damage caused by the shutdown instigated to try and curb the spread of the virus, by trimming interest rates and injecting 1.2 trillion yuan of liquidity into the markets.
Elsewhere, BP struck a sharp contrast with arch-rival Royal Dutch Shell as is boosted its dividend payout. A 26% drop in fourth-quarter profit on lower oil and gas prices still beat forecasts.
Earlier Tuesday, financial markets on the Chinese mainland reversed some of the steep losses of Monday, when they reopened after an extended Lunar New Year holiday. The blue-chip Shanghai Composite index closed over 1% higher, compared with Monday’s drop of 7.7%.
Additionally, China’s securities regulator sought to limit short selling and stop mutual fund managers selling shares unless they face investor redemptions, Reuters reported.
The number of coronavirus deaths in China still climbs, reaching 425 as of the end of Monday, from over 20,000 cases. And there are no signs that the economic shutdown will end anytime soon. Macau, the world’s biggest gambling hub, is asking casinos to close temporarily to curb the coronavirus spread, while Hong Kong reported a death from the disease.
Turning back to Europe, the economic data calendar is a little bare, with just the U.K. construction PMI data for January and eurozone producer prices of note, leaving eyes to focus on the ongoing earnings season.
Elsewhere in Europe, jeweller Pandora’s fourth-quarter operating profit beat forecasts despite disappointing sales in China, but it said its 2020 organic sales growth will fall by 3%-6%.
On Wall Street, Google parent Alphabet reported after hours Monday, missing analysts’ estimates while offering up its worst fourth-quarter revenue growth since 2015.
The earnings releases will continue today from the likes of Snap and Walt Disney, while eyes will also be on the State of the Union speech by U.S. President Donald Trump as his impeachment trial continues.
Oil prices rose on Tuesday with technical experts from OPEC+ expected to meet at the cartel’s Vienna headquarters later in the day to study the coronavirus’ impact. There has been talk that the group will decide to cut production to try and raise prices from these weak levels.
AT 02:05 AM ET (0705 GMT), U.S. crude futures traded 1% higher at $50.59 and the international benchmark Brent contract rose 0.6% to $54.81. Gold futures for February delivery on New York’s COMEX, by contrast, were 0.4% lower at $1,575.95.
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