European equities rose on Tuesday after a series of positive earnings, as banking papers advanced as government bond yields hit new highs in anticipation of faster interest rate hikes by global central banks to fight inflation.
The pan-European STOXX 600 index rose 0.53% to 446.20 points and rebounded from a “lightning crash” in the previous trading session caused by a single sell order from Citigroup Inc.
The oil and gas sector jumped 4.1% to lead gains among European sectors, boosted by BP, which rose 5.8%, with strong operating performance on the back of higher oil and gas prices that helped the British energy to step up share buybacks.
Economically sensitive sectors such as banks and automakers advanced about 2% each and led gains in early trading after returns on German 10-year bonds hit 1% for the first time since June 2015.
“The narrative so far this year has been very much driven by inflation and interest rates. What markets are trying to gauge now is a slowdown in global growth and what impact that has on monetary policy going forward,” said Dan Boardman-Weston, chief executive officer of BRI Wealth Management.
- In London, the Financial Times index advanced 0.22%, to 7,561.33 points;
- In Frankfurt, the DAX index rose 0.72% to 14,039.47 points;
- In Paris, the CAC-40 index gained 0.79%, at 6,476.18 points;
- In Milan, the Ftse/Mib index appreciated by 1.61%, at 24,242.25 points;
- In Madrid, the Ibex-35 index registered an increase of 1.83%, to 8,590.20 points;
- In Lisbon, the PSI20 index rose by 0.33%, at 5,883.42 points.
Source: CNN Brasil
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