European stocks are generally high; The UK retail industry is focused on Investing.com
Investing.com – European stock markets rose sharply on Tuesday, rebounding from recent losses, but worries about rising inflation and rising borrowing costs are set to keep investors cautious.
At 03:05 ET (08:05 GMT), the Germans rose 0.6% and the French gained 1%, while the UK fell 0.1%.
The Chinese gain helps the overall tone
European stocks bounced back from the previous session’s weakness, helped by the positive tone seen in Asia overnight on reports of a slow US tax hike under the new administration of Donald Trump.
Chinese stocks rose on Tuesday following a Bloomberg report showing that members of President-elect Donald Trump’s economic team are considering a plan to gradually raise rates each month.
The proposal is in its early stages and has not yet been presented to Trump, indicating that the concept is still under early consideration.
Trump has vowed to impose a flat 60% tariff on Chinese imports, and has hinted that European carmakers could face additional costs for US imports.
The French PM is about to speak
That said, investors will continue to look at government bond yields in the eurozone, the UK and the US, after short- and long-term government debt yields rose to multi-month highs last week, raising the cost of government bailouts. their debt.
New French Prime Minister Francois Bayrou is scheduled to speak later in the session, asking for the support of other opposition parties – and the Socialists in particular – to pass the 2025 budget.
French government debt yields have risen this year as investors worry about political instability and growing public deficits, and investors worry that Bayrou will backtrack on pension reforms that could save the government billions of euros.
Also of note will be the release of the US, ahead of this widely watched on Wednesday, as investors worry that high levels of inflation will limit interest rate cuts by the Federal Reserve in 2025.
It, by contrast, is widely expected to cut interest rates at least four times this year, as it cut four times last year.
Ocado flies, JD (NASDAQ: ) Sports collapse
In business news, Swiss chocolate maker Lindt & Spruengli (SIX:) said its sales grew 7.8% organically last year, slightly below market expectations, weighed down by record cocoa prices and weak consumer sentiment.
Ocado (LON:) stock rose 12% after the British online supermarket said sales growth picked up in the fourth quarter, as more competitive prices helped it win more customers from its rivals, while. JD Sports Fashion (LON:) stock fell 12% after the retailer cut its full-year profit guidance after revenue fell during the all-important Christmas quarter.
Persimmon (LON:) stock gained more than 4% after the homebuilder reported sales growth last year, pointing to the start of a recovery in the housing market.
A crude pullback from a four-month high
Oil prices fell on Tuesday, reversing a four-month high caused by new US sanctions on Russian oil exports and concerns about supply disruptions.
At 03:05 ET, US crude futures (WTI) were down 0.5% at $75.91 a barrel, while the contract was down 0.7% at $80.45 a barrel.
Oil has gained significantly over the past two sessions after the Biden administration unveiled its most comprehensive sanctions package to date, aimed at curbing Russian oil and gas revenues.
This development is expected to significantly disrupt Russian oil exports, forcing major traders such as China and India to seek alternative suppliers in regions such as the Middle East, Africa and the Americas.
