Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European Stocks Higher; German Retail Sales Help Optimism

Published 04/01/2022, 09:00
Updated 04/01/2022, 09:00
© Reuters.

© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded higher Tuesday, continuing the positive start to the new year with strong German retail sales boosting hopes of a steady economic recovery despite a surge in Covid-19 cases. 

At 3:45 AM ET (0845 GMT), the DAX in Germany traded 0.2% higher, the CAC 40 in France rose 0.7% to an all-time high, while the U.K.’s FTSE 100 gained 1.3%. The pan-European STOXX 600 also climbed to a record, up 0.9%.

German retail sales rose unexpectedly in November, climbing 0.6% on the month, lifting annual retail sales to a record high despite renewed Covid-19 restrictions which held back a consumer-led recovery in Europe's largest economy.

French inflation also stabilized in December, with the 3.4% year-on-year increase in the Eurozone’s second largest economy slightly less than the 3.5% expected. The European Central Bank has argued that price pressures may be near their peak in the Eurozone, and the French figures support that view. 

French Finance Minister Bruno Le Maire said on Tuesday that the country's growth would be significantly higher this year than the government's current forecast of 6.25%.

This optimism, which added to data earlier showing an improvement in China’s factory activity in December, exists despite the continued uncertainty around the Covid-19 pandemic, with many European countries, as well as the U.S., reporting record numbers of daily cases, prompting the reimposition of restrictions to stop the spread of the highly contagious Omicron variant. 

European indices posted strong gains on Monday, the first trading day of the new year, with the STOXX 600 index ending at a record close. Wall Street followed suit, with the S&P 500 and the Dow Jones Industrial Average also closing at record levels, while Asia was largely on the front foot Tuesday.

In corporate news, Novartis (SIX:NOVN) stock rose 0.4% after a U.S. court of appeals upheld the validity of a patent for the Swiss drugmaker’s multiple sclerosis treatment Gilenya.  

Elsewhere, the tech sector received a boost from Apple's (NASDAQ:AAPL) market value rising above $3 trillion for the first time on Monday and Tesla (NASDAQ:TSLA) publishing a strong fourth quarter in terms of vehicles delivered.

Oil prices edged higher ahead of a meeting of top producers to discuss future output levels amid rising Omicron cases but only limited restrictive measures in the biggest fuel-consuming countries.

The Organization of the Petroleum Exporting Countries and allies, a grouping called OPEC+, will meet virtually later in the day, with the cartel expected to stick to its plan to increase output by 400,000 barrels per day in February. The group has fallen short of its quota allowances repeatedly in recent months, despite its official policy numbers.

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

By 3:45 AM ET, U.S. crude futures traded 0.4% higher at $76.38 a barrel, while the Brent contract edged 0.3% higher to $79.19. Both contracts jumped more than 1% on Monday.

Additionally, gold futures rose 0.2% to $1,804.35/oz, while EUR/USD edged higher to 1.1297.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.