On Tuesday, European stock markets were a bit higher as investors continued to assess the global economy’s health and corporate earnings.
- Pan-European Stoxx 600 index increased by 0.16% at 9:30 am London time on Monday
- Banks gained 0.94%
- Mining stocks increased by 0.87%
- Utilities declined by 0.52%
- UK FTSE should open by 17 points higher at 7,899
- German DAX is 30 points greater at 15,821
- French CAC is 14 points greater at 7,516
- Italian FTSE MIB by 116 points greater at 27,303
UK job market data showed that employment increased, and inactive people declined by 0.4% to 21.1%. Meanwhile, wages have unexpectedly increased by 6.9% in the private sector and 5.3% in the public sector.
Ashley Webb, a UK economist, said it waived the Bank of England with the “difficult question of whether to raise interest rates further,” although wage growth has also slowed. And that Wednesday’s UK consumer price inflation data “could be crucial.”
Airline EasyJet increased by 3% after cutting first-quarter losses on strong Easter demand and said full-year profit would likely beat estimates.
Sweden’s Ericsson is down 6.2% after announcing lower quarterly sales and full-year profits. CEO BörjeEkholm told CNBC that conditions are challenging but expects a gradual recovery in the year’s second half.
Asia-Pacific markets were mixed, with China’s economy growing more than expected at 4.5% year-on-year, beating a 4% growth estimate in a Reuters poll. The Chinese onshore yuan recovered slightly after the report was released.
While European markets grew, United States stock futures were flat on Monday after major moving averages rallied, beginning a full week of corporate earnings. Bank of America, Johnson & Johnson, and Goldman Sachs report before Tuesday’s bell.
UK Economic Activity
The UK unemployment rate increased by 0.1% to #.8% between December and February 2023. According to estimates, the number is stable. However, according to the Office for National Statistics, the inactivity rate fell by 0.4 percentage points.
Salaries grew more than expected by 5.9%, including bonuses, and 6.6% without them.
James Smith, developed markets economist at Dutch bank ING, said the wage increase being launched was “a wrench” for those who expect the Bank of England to keep interest rate steady in May.
