European stocks inch higher as global markets look for gains after rout

Key Points

• The Bank of England is due to publish its latest biannual Financial Stability Report on Tuesday. The European Central Bank publishes accounts of its latest monetary policy discussion on Thursday.
• Data releases on Tuesday include final June purchasing managers’ index data for the euro area and French industrial production figures for May. Retailer Marks and Spencer holds an annual general meeting on Tuesday.

LONDON — European stocks nudged higher on Tuesday as global markets look to cement gains after a bruising week for stocks last week.

The pan-European Stoxx 600 added 0.4% in early trade, with travel and leisure stocks adding 1.5% to lead gains while oil and gas stocks slipped 1%.

Uniper shares gained 9%, partially recovering from Monday’s 27% plunge after the German utilities giant revealed that it was in state bailout talks with the government, having been driven to the brink by Russia’s war in Ukraine and depleting Russian gas supplies.

At the bottom of the European blue chip index, shares of German mass media company ProSiebenSat.1 fell more than 5% after Goldman Sachs downgraded the stock to “sell” from “neutral.”

European markets are looking to build on solid momentum after the region’s indexes closed higher on Monday, albeit wrapping up a quieter day for global markets given the July Fourth holiday in the United States.

Overnight, U.S. stock futures rose early on Tuesday morning, with markets looking ahead to when the U.S. Federal Reserve releases the minutes from its latest Federal Open Market Committee meeting on Wednesday.

U.S. data releases this week also include the release of June jobs report data on Friday. According to Dow Jones estimates, job growth likely slowed in June, with 250,000 nonfarm payrolls added, down from 390,000 in May. Economists surveyed expect the unemployment rate to hold at 3.6%.

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Shares in the Asia-Pacific region mostly traded higher overnight as the Reserve Bank of Australia raised interest rates by 50 basis points to 1.35%, in line with expectations.

Central bank action is also likely to guide market sentiment in Europe this week. The Bank of England is due to publish its latest biannual Financial Stability Report on Tuesday. The European Central Bank is set to publish accounts of its latest monetary policy discussion on Thursday.

Data releases on Tuesday include final June purchasing managers’ index data for the euro area and French industrial production figures for May. Retailer Marks and Spencer holds an annual general meeting on Tuesday.

Source : CNBC