UK financial services saw an impressive increase of 0.84%. The FTSE 100 outperformed, rising 1.45%, as the British pound faced a decline against both the U.S. dollar and the euro. Additionally, U.K. bond yields experienced a sharp fall.
The UK consumer price index report released at 7 a.m. BST showed an annual headline inflation rate of 7.9%, surpassing the consensus forecast of 8.2% and marking a decrease from May’s 8.7%. Core CPI came in at 6.9%, lower than the expected 7.1%, while services inflation also recorded a decline.
In Europe, ASML, the Dutch chip industry giant, experienced a 0.5% increase in its net profit, beating forecasts. Meanwhile, Goldman Sachs is set to report before the market opens in the United States, with Netflix, Tesla, IBM, and United Airlines posting earnings after the market closes.
U.S. stock futures remained relatively stable overnight after the major averages achieved their highest closes since April 2022. Meanwhile, Asia-Pacific markets traded higher in response to the U.S. earnings reports.
European Stocks Stage Late-Day Rally, Bolstered by Possible ECB Policy Pause
Cautious Start Leads to Strong Finish for European Stock Markets
Tuesday saw European stocks struggling to find direction until the late afternoon session. However, investor sentiment improved after positive comments from ECB council member Klass Knot, suggesting a potential pause in the central bank’s tightening cycle.
Economic growth concerns in China and disappointing U.S. retail sales and industrial production data for June initially dampened the market mood. Additionally, investors awaited the release of UK inflation data for June.
The pan-European Stoxx 600 index rose by 0.62%, while the FTSE 100, DAX, CAC 40, and SMI posted gains of 0.64%, 0.35%, 0.38%, and 1.16% respectively.
Various European markets ended the session on a high note, with several countries witnessing notable gains. However, Turkey closed weak, and Denmark ended flat.
In the German market, Covestro led the rally with a significant gain of over 5.5%. Zalando and Vonovia saw strong growth, claiming gains of 4.5% and 4.1%, respectively, while BASF advanced by 3.2%.
The UK market experienced notable movements, with Ocado Group surging over 16% early in the session, though it later pared gains to end 5% higher. Royal Mail also soared, recording nearly 5.5% gains.
Swiss stocks witnessed a standout performance by Novartis, surging nearly 5% after raising its full-year earnings guidance and announcing plans for the spin-off of its generic medicines division Sandoz in the fourth quarter.
