Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

European stocks edge higher; AB Inbev results help ahead of key data

Published Oct 31, 2023 16:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
F40
-0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/USD
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+0.05%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - European stock markets edged higher Tuesday, as investors digested more corporate earnings ahead of the release of key regional growth and inflation data, overshadowing disappointing Chinese activity data.

At 03:45 ET (08:45 GMT), the DAX index in Germany traded 0.5% higher and the CAC 40 in France climbed 0.6% and the FTSE 100 in the U.K. rose 0.2%.

AB Inbev boosted by hefty share buyback

Investors have been digesting more quarterly earnings from a series of influential companies Tuesday.

Anheuser Busch Inbev (EBR:ABI) stock rose 2.5% after the world’s largest brewer reported third-quarter sales growth that was slightly better than expected, and also announced a $1 billion share buyback, as pricing boosted revenue and helped offset lower volumes of beer sold.

Rival Carlsberg (CSE:CARLb), by contrast, fell 2% after the Danish brewer reported third-quarter sales broadly in line with expectations but warned that weak consumer sentiment in Europe and Southeast Asia could impact beer markets negatively.

BP (LON:BP) stock fell 4.6% after the energy giant reported third-quarter earnings of $3.3 billion, missing analysts' forecasts, after a large drop in energy prices from a year ago, overshadowing an extension of its $1.5 billion share repurchase program.

BBVA (BME:BBVA) stock fell 2% after the Spanish lender's 29% year-on-year rise in provisions and a loss in Turkey overshadowed a 13% rise in third quarter net profit.

Thales (EPA:TCFP) stock slumped 4% after Europe's largest defence electronics maker said its order intake fell 18% from the same period last year, even with resurgent demand for jetliner components and military equipment.

Eurozone growth, inflation data due

Investors will have the opportunity to study the latest eurozone growth and inflation data later in the session, as they look for clues of future European Central Bank monetary policy decisions. 

Gross domestic product is expected to grow by just 0.2% on an annual basis in the third quarter, a drop from 0.5% growth the prior quarter, while consumer prices are seen rising 3.1% annually in October, a drop from 4.3% the previous month.

French GDP grew 0.1% on the quarter, with growth slowing from the previous quarter, data showed earlier Tuesday, while German retail sales slumped 0.8% on the month in September, an annual drop of 4.3%.

Chinese activity data disappoints

Sentiment was hit earlier Tuesday by the release by weaker than expected Chinese purchasing managers’ indices, denting hopes a recovery in the world’s second largest economy, however fragile, was underway.

China’s official manufacturing purchasing managers' index fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion.

The non-manufacturing PMI also fell to 50.6 last from 51.7 in September, indicating a slowdown in activity in the vast service sector and construction.

Chinese policymakers have unveiled a raft of measures over the last few months in an attempt to boost the economy after a rapid loss of momentum following a brief post-COVID rebound. 

The country’s third-quarter gross domestic product rose 4.9%, data showed earlier this month. This was more than expected, raising tentative hopes of a recovery.

BOJ holds interest rates at low levels

Trading ranges are likely to be limited ahead of Wednesday’s Federal Reserve meeting, given the likely significance of this decision.

Earlier Tuesday, the Bank of Japan held interest rates at ultra-low levels and slightly altered the rhetoric around its yield curve control policy, saying it will use the upper end of its YCC band, a range of -1% to 1%, as a reference cap for its market operations. 

Crude rebounds after sharp fall

Oil prices edged higher Tuesday, rebounding after a bruising session, although weaker-than-expected activity data from China limited the gains on fears of slowing fuel demand from the world's largest crude importer.

By 03:45 ET, the U.S. crude futures traded 0.7% higher at $82.91 a barrel, while the Brent contract climbed 0.9% to $87.11 a barrel. 

The market slumped nearly 3% on Monday despite Israel stepping up its ground assault on Gaza, as traders chose to bank recent profits ahead of a string of key economic events this week, most notably a Fed decision on interest rates this Wednesday.

Events in the Middle East remain in focus, with traders wary of the conflict between Israel and Hamas expanding into a wider regional war in this oil-rich region. 

Additionally, gold futures rose 0.1% to $2,007.05/oz, while EUR/USD traded 0.2% higher at 1.0638.

 

European stocks edge higher; AB Inbev results help ahead of key data
 

Related Articles

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
Continue with Google
or
Sign up with Email