Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stock Futures Stabilise After Sell-Off; UBS Impresses With Profit Jump

Stock MarketsJul 20, 2021 07:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets are seen edging higher at the open Tuesday, stabilizing after Monday’s rout on concerns that the resurgence of Covid cases will derail the global economic recovery.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.4% higher, CAC 40 futures in France climbed 0.4% and the FTSE 100 futures contract in the U.K. rose 0.4%.

Stock indices in Europe closed sharply lower Monday, with the DAX down 2.6%, the CAC 40 down 2.5% and the FTSE 100 2.3% lower, amid fears the latest surge of Covid-19 cases, led by the highly contagious delta variant, will prompt governments to resume tight lockdowns and curb economic activity.

The news was no better on Wall Street, with the blue chip Dow Jones Industrial Average dropping more than 700 points, while Asia Pacific stocks were mostly down on Tuesday, continuing their losses from a day earlier.

These markets had rallied strongly in the first half of the year as investors bet that the rollout of Covid-19 vaccination programs would help economies to recover strongly as mobility restrictions were lifted. However, the increase in new cases, firstly in Asia but increasingly in Europe and the U.S., has changed that narrative.  

Helping the tone Tuesday was the news that UBS (NYSE:UBS) reported a 63% jump in quarterly net profit to $2 billion, up from the $1.23 billion reported for the same period last year, helped by what the Swiss banking giant described as “favorable” market conditions.

LVMH (PA:LVMH) will also be in the spotlight Tuesday after the French luxury group said it had agreed to buy a 60% stake in the luxury streetwear brand Off-White, while earnings updates come from Volvo (ST:VOLVb), Ubisoft (PA:UBIP) and easyJet (LON:EZJ).

On the economic data front, the Eurozone current account data for May is scheduled later Tuesday, but most eyes will be on German producer prices for June given the recent concerns about the rise in inflation globally.

Elsewhere, oil prices edged higher Tuesday, steadying after the previous session’s sharp selloff on the back of worries that increased Covid cases will hit the short-term demand for energy just as a group of top producers agreed to increase supply.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.

By 2:05 AM ET, U.S. crude futures traded 0.9% higher at $66.95 a barrel, after dropping more than 7% Monday, their worst session since September, while the Brent contract rose 0.7% to $69.07, after falling 6.8% to an eight-week low.

Additionally, gold futures rose 0.4% to $1,816.35/oz, while EUR/USD traded 0.1% lower at 1.1784.

 

European Stock Futures Stabilise After Sell-Off; UBS Impresses With Profit Jump
 

Related Articles

Darden, Costco, Rite Aid Earnings: 3 Things to Watch
Darden, Costco, Rite Aid Earnings: 3 Things to Watch By Investing.com - Sep 22, 2021

By Dhirendra Tripathi Investing.com -- Stocks recovered on Wednesday after the Federal Reserve kept short-term rates untouched but said it would begin to reduce its monthly bond...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email