European markets began the day with a slight upward trend on Tuesday, with hot stocks attracting investor caution ahead of the release of key data and the start of the second-quarter earnings season.
The pan-European Stoxx 600 index saw a 0.18% increase by 10 a.m. London time, indicating subdued trading activity. Healthcare stocks led the gains, rising by 0.66%, while construction stocks experienced a 0.5% decline.
Earlier in the day, Germany released trade figures indicating a 0.1% monthly decrease in exports and a 1.7% rise in imports, resulting in a foreign trade balance of 14.4 billion euros ($15.7 billion).
Investors Exercise Caution as Data Releases and Second-Quarter Earnings Approach
Investors are eagerly anticipating the release of the minutes from the last meeting of the U.S. Federal Reserve, scheduled for Wednesday. Chairman Jerome Powell’s recent statement alluded to upcoming restrictions, and the market is currently pricing in an 89.9% likelihood of a 25-basis-point interest rate hike in July, according to CME’s FedWatch tool.
On Tuesday, oil prices saw a marginal rise as a result of Saudi Arabia’s choice to extend its voluntary oil production cut of 1 million barrels per day into August. This decision bolstered the performance of oil and gas stocks, as well as the mining sector, on Monday. Despite concerns regarding the global economic outlook, the manufacturing purchasing managers’ index figures from S&P Global disclosed a deceleration in global factory output for the month of June.
European Cyclical Stocks End First Half with Slight Dip, Mining Stocks Rally
European stock markets concluded Monday’s trading session with a slight downturn, shortly after ending the first half of the year with an impressive 8.8% increase.
The pan-European Stoxx 600 index ended with a 0.2% decline, showing mixed performance across sectors during a volatile session. Mining stocks led the gains, rising by 2.2%, followed by a 1.6% increase in oil and gas stocks. This marks the end of today’s hot stocks.
However, healthcare stocks faced a 2% decline, particularly impacting AstraZeneca, whose shares dropped by 8% due to disappointing preliminary results from a lung cancer treatment trial that fell short of analyst expectations.