Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
European stocks edge higher; caution remains over global growth concerns
Author
Published May 16, 2023 03:45AM ET
Updated May 16, 2023 03:57AM ET
© Reuters
Investing.com - European stock markets traded largely higher Tuesday, with investors digesting global growth concerns, political uncertainty as well as more corporate earnings.
At 03:45 ET (07:45 GMT), the DAX index in Germany traded 0.2% higher and the FTSE 100 in the U.K. climbed 0.2%, while the CAC 40 in France traded largely unchanged.
Investors have traded in a cautious manner Tuesday, with data showing that the U.K. unemployment rate unexpectedly rose to 3.9% in March while pay growth, which has been fueling inflation, remained strong by historical standards.
The European Commission on Monday lifted its gross domestic product estimate higher for this year, now forecasting 1% growth, up from a previous 0.8% estimate.
However, it also raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, expecting the European Central Bank to continue with rate hikes, potentially adding to growth concerns.
The preliminary estimate of the euro zone’s first quarter gross domestic product is scheduled to be released later in the session, and is expected to show the region barely grew in the opening three months of the year.
The German ZEW economic sentiment index for May is also due later in the session and will provide clues about the economic health of the euro zone’s largest economy.
Earlier Tuesday, data showed that China’s post-COVID economic rebound was slowing, a negative for many European companies which export to this usually vibrant market.
Adding to these growth concerns is the political uncertainty in Turkey as well as the drawn-out U.S. debt ceiling debate.
In the corporate sector, Vodafone (LON:VOD) stock fell 3.5% after the U.K.-based telecoms group announced plans to cut 11,000 jobs over three years as it forecast a hefty drop in free cash flow this year.
Oil prices rose Tuesday, boosted by U.S. plans to refill its heavily-depleted strategic reserves, overshadowing the weak Chinese economic data.
The U.S. Department of Energy said on Monday it would buy 3 million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August, and asked that offers be submitted by May 31.
The move comes after the Biden administration drew the SPR to its lowest level since 1983 over the past year in a bid to bring down record-high fuel prices spurred by the Russia-Ukraine conflict.
By 03:45 ET, U.S. crude futures traded 0.2% higher at $71.25 a barrel, while the Brent contract climbed 0.2% to $75.41.
Additionally, gold futures fell 0.5% to $2,012.80/oz, while EUR/USD traded 0.2% higher at 1.0890.
Related Articles
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
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.