Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

European Stock Futures Stabilize After Sell-Off; UBS Impresses With Profit Jump

Published 07/20/2021, 02:01 AM
Updated 07/20/2021, 02:02 AM
© Reuters.
EUR/USD
-
UK100
-
XAU/USD
-
FCHI
-
DJI
-
DE40
-
EZJ
-
LVMH
-
VOLVb
-
UBIP
-
UBS
-
DE30
-
GC
-
LCO
-
UK100
-
CL
-
F40
-
USO
-

By Peter Nurse 

Investing.com - European stock markets are seen edging higher at the open Tuesday, stabilizing after Monday’s rout on concerns that the resurgence of Covid cases will derail the global economic recovery.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.4% higher, CAC 40 futures in France climbed 0.4% and the FTSE 100 futures contract in the U.K. rose 0.4%.

Stock indices in Europe closed sharply lower Monday, with the DAX down 2.6%, the CAC 40 down 2.5% and the FTSE 100 2.3% lower, amid fears the latest surge of Covid-19 cases, led by the highly contagious delta variant, will prompt governments to resume tight lockdowns and curb economic activity.

The news was no better on Wall Street, with the blue chip Dow Jones Industrial Average dropping more than 700 points, while Asia Pacific stocks were mostly down on Tuesday, continuing their losses from a day earlier.

These markets had rallied strongly in the first half of the year as investors bet that the rollout of Covid-19 vaccination programs would help economies to recover strongly as mobility restrictions were lifted. However, the increase in new cases, firstly in Asia but increasingly in Europe and the U.S., has changed that narrative.  

Helping the tone Tuesday was the news that UBS (NYSE:UBS) reported a 63% jump in quarterly net profit to $2 billion, up from the $1.23 billion reported for the same period last year, helped by what the Swiss banking giant described as “favorable” market conditions.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

LVMH (PA:LVMH) will also be in the spotlight Tuesday after the French luxury group said it had agreed to buy a 60% stake in the luxury streetwear brand Off-White, while earnings updates come from Volvo (ST:VOLVb), Ubisoft (PA:UBIP) and easyJet (LON:EZJ).

On the economic data front, the Eurozone current account data for May is scheduled later Tuesday, but most eyes will be on German producer prices for June given the recent concerns about the rise in inflation globally.

Elsewhere, oil prices edged higher Tuesday, steadying after the previous session’s sharp selloff on the back of worries that increased Covid cases will hit the short-term demand for energy just as a group of top producers agreed to increase supply.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.

By 2:05 AM ET, U.S. crude futures traded 0.9% higher at $66.95 a barrel, after dropping more than 7% Monday, their worst session since September, while the Brent contract rose 0.7% to $69.07, after falling 6.8% to an eight-week low.

Additionally, gold futures rose 0.4% to $1,816.35/oz, while EUR/USD traded 0.1% lower at 1.1784.

 

Latest comments

It's great to see such a vast improvement in the fight against Covid since yesterday!
ahahahahah !! savage comment. these guys write " European stocks edging lower " ... when they rise it's all about " stocks stabilize " !! They are edging higher today. These articles are laughable sometimes
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.