European markets were predominantly higher on Tuesday, with the FTSE 100 reaching an intraday record high as investors continued to build on positive momentum from the previous session. The pan-European benchmark Stoxx 600 index was up 0.9% in morning deals, with the majority of sectors trading in positive territory. Tech stocks led gains, rising 2%, while mining stocks fell 1.4%. The U.K.’s FTSE 100 extended gains, rising 0.55% to trade at an all-time intraday high of 8067.73 in early deals, before dipping slightly. This came after the index had its fourth daily gain on Monday and surpassed its previous record close set in February 2023. U.K. stocks were boosted while sterling tumbled against the U.S. dollar as investors raised bets on a summer interest rate cut from the Bank of England.
Investors in the region are anxiously anticipating bank earnings this week, and are also keeping a close eye on a range of tech earnings in the U.S., with Tesla reporting during U.S. trading hours on Tuesday. In Europe, Renault, Kering, OVH, Novartis, and Associated British Foods all reported earnings. Additionally, preliminary manufacturing and services purchasing managers’ index data for the eurozone in April was released. Meanwhile, Asia-Pacific markets continued to extend gains from Monday as investors looked to flash business activity figures from Australia, Japan, and India. U.S. stock futures were edging higher on Tuesday morning, indicating a positive start for markets stateside.
The positive sentiment in European markets reflects a broader sense of optimism amongst investors, with tech stocks leading gains amid a mixed performance from other sectors. The FTSE 100’s record intraday high demonstrates the strength of the U.K. market, despite uncertainties surrounding interest rate cuts. Investors are closely monitoring earnings reports from banks and tech companies, both in Europe and the U.S., to gauge the overall health of the global economy. The release of data on the eurozone’s manufacturing and services sectors provides further insight into the region’s economic performance.
As investors await further earnings reports and economic data, market participants are keenly observing developments in other regions, such as Asia-Pacific and the U.S. The continued gains in Asia-Pacific markets suggest a positive outlook for the global economy, while U.S. stock futures indicate a potential upward trend in American markets. The interconnected nature of the global economy means that events in one region can have ripple effects across the world, leading investors to closely monitor developments in various markets. Overall, the positive performance of European markets on Tuesday reflects a broader sense of optimism and confidence among investors, despite ongoing uncertainties and challenges in the global economy.
