European Stock Markets Trade Flat Amid Cautious Sentiment

Strategic Insights -

European stock markets traded largely flat Tuesday, with market participants cautious as U.S. corporate earnings have tended to drive individual sector responses. Tech stocks led the decliners in the region after earnings from leading U.S. corporates Apple and International Business Machines Corp, while banking stocks posted early gains after a healthy earnings report from Citigroup. The Stoxx Europe 600 index was up 0.1% at 266.90, with the FTSE 100 in London down 0.1% at 5738.28 and the DAX in Frankfurt up 0.2% to 6531.21.

Key Takeaways:

  • European stock markets traded flat Tuesday, with market participants cautious due to U.S. corporate earnings.
  • Tech stocks led the decliners in the region, with Apple's earnings falling short of analysts' projections for the fourth quarter.
  • Banking stocks posted early gains after Citigroup's healthy earnings report, with the Stoxx Europe 600 banks index rising 1.2% to 215.61.
  • IBM's third quarter profit rose 12% due to higher revenue and strong demand in growth markets.
  • U.S. Federal Reserve officials, including New York Fed President Bill Dudley and Fed Chairman Ben Bernanke, will make remarks beginning at 1300 GMT.
  • The German ZEW survey for October and UK CBI industrial trends data will be closely watched on Tuesday.

Statistics:

  • The Stoxx Europe 600 index was up 0.1% at 266.90.
  • The FTSE 100 in London was down 0.1% at 5738.28.
  • The DAX in Frankfurt was up 0.2% to 6531.21.
  • Apple's fourth quarter earnings showed sales of the iPad fell short of analysts' projections.
  • IBM's third quarter profits rose 12% due to higher revenue and strong demand in growth markets.
  • The Stoxx Europe 600 banks index rose 1.2% to 215.61.
  • The euro fetched $1.3927 against the dollar, from $1.3943 late Monday in New York.
  • Spot gold was down around $1 at $1368 per troy ounce from the New York close on Monday.

Sources:

  • Dow Jones Commodities News Select via Comtex
  • Ilya Spivak, a strategist at Daily FX
  • Credit Agricole
  • Dow Jones Newswires
  • Ishaq Siddiqi, Dow Jones Newswires