Gold – European Stock Futures Higher; SocGen Earnings Help By Fintech Zoom
© Reuters.
By Peter Nurse
Fintech Zoom – European stock markets are seen opening higher Wednesday, boosted by continued optimism for a global economic recovery from the coronavirus pandemic as well as solid earnings from French banking giant Societe Generale (OTC:).
At 2:05 AM ET (0705 GMT), the contract in Germany traded 0.1% higher, in France climbed 0.3%, and the contract in the UK. rose 0.4%.
China’s rose in annual terms in January for the first time in a year, according to data released earlier Wednesday, pointing to strong manufacturing growth in the world’s second-largest economy.
However, this positive news has to be tempered by Chinese falling back into deflation as virus restrictions curbed travel and spending.
In Europe, German January were confirmed climbing 0.8% on the month, a gain of 1.0% on the year, having slipped into negative territory late in 2020 due to the government’s temporary VAT cut, which has now expired.
Stock markets have climbed strongly in the last few months on expectations of a global economic recovery on the back of vast fiscal and monetary spending coupled with vaccination programs to the end of the coronavirus pandemic. Italian stocks remained near 12-month highs on Tuesday after Silvio Berlusconi said his Forza Italia party will back the new government of Mario Draghi, bringing him closer to commanding a solid majority in the Chamber of Deputies.
Also helping the tone of late has been a solid European earnings season, and this is set to continue Wednesday.
Societe Generale (PA:) beat expectations, with the French banking giant reporting a net profit of 470 million euros ($569 million) for the fourth quarter, ending 2020 with a net loss of 258 million euros. The bank saw a “significant improvement” in the business during the second half of 2020, after heavy losses on equity derivatives earlier in the year.
German conglomerate Thyssenkrupp (DE:) raised its full-year outlook for sales, cash flow and profits, citing improved demand for automotive components and materials.
On a busy day for corporate results, earnings are also expected from the likes of Air Liquide (PA:), Metro (DE:), Siemens Energy (DE:), Heineken (OTC:) and Equinor (OL:).
Oil prices edged lower Wednesday, as traders began taking profits after a week-long rally, validated on Tuesday by a further drop in U.S. crude stocks. The reported an unexpected fall in last week. Supply data from the , due later in the day, will now be studied carefully.
U.S. crude futures traded 0.3% lower at $58.18 a barrel, while the international benchmark contract fell 0.5% to $60.94.
Elsewhere, rose 0.4% to $1,844.50/oz, while traded 0.1% higher at 1.2125.
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Gold – European Stock Futures Higher; SocGen Earnings Help By Fintech Zoom
