earnings, economic data and recovery on the radar

LONDON – European markets were slightly higher Wednesday morning after investors watched economic data and corporate earnings.

The pan-European Stoxx 600 fell 0.1% above the early trading flatline, with technology stocks up 1.2%, while telecom declined 0.6%.

Stocks in Europe got a slightly positive hangover from Asia-Pacific, where Chinese tech stocks listed in Hong Kong rebounded on Wednesday after 12 major companies declared they were in compliance with antitrust laws.

In the United States, futures pegged to major indices had changed little in early premarket trading after the S&P 500 closed at a new all-time high. Investors in the United States will be on the lookout for some significant earnings reports on Wednesday, with banking giants JPMorgan, Goldman Sachs and Wells Fargo all reporting.

US health authorities on Tuesday recommended that the distribution of Johnson & Johnson’s Covid-19 vaccine be interrupted after six women under the age of 50 developed rare blood clots after receiving the inoculation. Johnson & Johnson announced that it would delay the vaccine’s rollout in Europe, while South Africa would also suspend its use.

Back in Europe, Credit Suisse told investors on Tuesday that $ 2.3 billion in loans is exposed to ongoing uncertainties surrounding Greensill Capital, a supply chain finance company.

Chief Economist Andy Haldane, Chief Economist of the Hawkish Bank of England, will step down from his various positions at the central bank following the June Monetary Policy Committee meeting, the Bank announced Tuesday.

In terms of earnings, French luxury goods group LVMH posted a sharp rise in earnings in the first quarter after Tuesday’s bubble, supported by Chinese and US demand for Louis Vuitton handbags and Dior products. LVMH shares gained 2.7% in early deals.

German software giant SAP slightly raised its 2021 revenue outlook on Tuesday after its first-quarter earnings showed robust gains in cloud sales, pushing shares up 2.7%. Compatible plastics company Covestro also raised its earnings outlook after improving margins, increasing its inventory by 2%.

British supermarket chain Tesco reported a 14.7% drop in annual profit before the bell, although sales remained resilient. Tesco shares fell 3.5% to the bottom of the Stoxx 600 during early trading.

Meanwhile, low-cost carrier EasyJet said it expects a fiscal first half year pre-tax loss of between £ 690 million ($ 950.6 million) and £ 730 million, but expects an increase in flights from the end of May. EasyJet shares added 3.5%.

At the top of the European blue chip index, Galapagos climbed 4% after Barclays upgraded the shares of the Belgian pharmaceutical company to “overweight”.

In terms of data, Eurozone industrial production figures are expected for February at 10:00 am London time.

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