Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

European Stock Futures Higher; HSBC, UBS Post Quarterly Results

Stock Markets Apr 26, 2022 02:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse 

Investing.com - European stock markets are expected to open higher Tuesday, rebounding to a degree from the previous session’s sharp losses, as investors digest key quarterly results from the banking sector. However, gains will be limited by concerns of slowing global growth and sharp monetary policy tightening.

At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 1.6% higher, CAC 40 futures in France climbed 1.6% and the FTSE 100 futures contract in the U.K. rose 1.1%.

European equity indices closed significantly lower Monday, with the DAX falling 1.5% and the CAC 40 just over 2%, but are expected to benefit Tuesday from the late revival on Wall Street, led by the tech-heavy Nasdaq Composite

Twitter (NYSE:TWTR) was a major focus as it finally confirmed it had accepted Elon Musk’s $44 billion offer to take the social media platform private. There are some significant earnings releases from the important sector this week, with both Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) reporting after the close Tuesday.

Back in Europe, it’s the banking sector that will be to the fore, as lending giants HSBC (LON:HSBA) and UBS (SIX:UBSG) both published quarterly results.

HSBC, Europe’s largest bank, posted a pretax profit of $4.2 billion for the first quarter, ahead of market expectations but this still represented a 27% drop from a year ago. The lender also said further buybacks were unlikely this year, citing rising inflation and economic uncertainty due to the Russia-Ukraine conflict.

UBS fared better, posting a 17% rise in first-quarter net profit to $2.14 billion, beating expectations for a fall in profit amidst uncertainties over the war in Ukraine, thanks to strong trading.

Banco Santander (BME:SAN), Spain’s biggest lender, beat net income expectations in the first quarter, helped by growth in its lending revenue.

Elsewhere, Swiss drugmaker Novartis (SIX:NOVN) posted a 3% rise in core operating income, helped by sales growth from new drugs, while Orange (EPA:ORAN), France's biggest telecoms operator, said its first-quarter core operating profit grew 1%.

Still, sentiment remains fragile as the stringent lockdown in Shanghai, dragging into its fourth week, as well as the spreading of Covid-19 cases to other big Chinese cities like Beijing, is weighing on the economic growth outlook.

Additionally, investors remain concerned about whether the global economy can withstand the increasingly hawkish pivot from a number of key central banks, in particular the Federal Reserve.

Meanwhile, the war in Ukraine enters its third month, with Russian troops continuing to attack the Azovstal steel plant in the southeastern port city of Mariupol, where some 2,000 Ukrainian fighters are holding out. 

Oil prices rebounded Tuesday from the sharp losses of the previous session, but concerns remain that more Covid-19 lockdowns in China will hit demand for crude from the world’s largest importer.

By 2 AM ET, U.S. crude futures traded 1% higher at $99.56 a barrel, while the Brent contract rose 1.3% to $103.49. Both benchmarks dropped around 4% on Monday.

Additionally, gold futures rose 0.5% to $1,906.30/oz, while EUR/USD traded 0.1% higher at 1.0726.

 

European Stock Futures Higher; HSBC, UBS Post Quarterly Results
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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