- Upbeat sentiment in Europe comes after there was a major comeback on Wall Street on Tuesday, with stocks rebounding sharply from Monday’s sell-off.
- In Europe on Wednesday, earnings came from Daimler, SAP, Julius Baer and Novartis, while Royal Mail released a trading update.
European stocks rose on Wednesday, as investors tracked earnings releases and positive momentum in the U.S.
The pan-European Stoxx 600 climbed 1.1% in early trade, with travel and leisure stocks surging 4% to lead gains as all sectors and major bourses entered positive territory.
Upbeat sentiment in Europe comes after there was a major comeback on Wall Street on Tuesday, with stocks rebounding sharply from Monday’s sell-off. The Dow Jones Industrial Average surged 549.95 points to 34,511.99. The S&P 500 jumped 1.52% to 4,323.06 while the Nasdaq Composite advanced 1.57% to 14,498.88.
Those gains were a comeback from Monday’s losses, which saw the Dow plunging more than 700 points, triggered by concerns over global growth and the economic recovery as Covid cases rise.
U.S. stock futures inched higher in early premarket trading on Wednesday while stocks in Asia Pacific also advanced. Japan’s exports rose 48.6% in June as compared with a year earlier, figures released Wednesday by the country’s Ministry of Finance showed. That was higher than a 46.2% increase expected by economists in a Reuters poll.
Earnings in focus
In Europe on Wednesday, earnings came from Daimler, SAP, Julius Baer and Novartis, while Royal Mail released a trading update.
SAP shares fell 3.2% in early trade despite raising its outlook for the second time this year, as a strategic push toward cloud computing began to bear fruit.
At the bottom of the Stoxx 600, Dutch chemicals company Corbion fell 6.6% after Barclays cut the stock to “underweight.”
At the top of the index, British fashion retailer Next surged 9% after smashing second-quarter sales forecasts. British media company Future also climbed 9% after raising its full-year guidance.
Daimler kept its profit margin outlook unchanged but warned that the global semiconductor shortage will continue to dent car sales into 2022. The German carmaker’s stock fell 2.1% in early trade.
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– CNBC’s Maggie Fitzgerald and Eustance Huang contributed to this market report.