UK stocks inched up on Tuesday morning, pulled up by technology stocks led by the cybersecurity firm Darktrace, which gained following its full-year outlook being raised for earnings and revenue margins after growth and customer retention accelerated.
European stocks reflected the same sentiments with the Euro Stoxx 50 index gaining as investors brushed off concerns of the European Central Bank being next in line to raise interest rates following the Bank of England and the US Federal Reserve.
What’s interesting today: Gaming companies Flutter and Entain increased by more than 3% after Citigroup reported bullish views for the sector, including possibilities for the US to introduce online betting regulations, which could go a long way in opening up that market further.
Why are stocks up today?
Pause in global equity sell-off: The global equity sell-off that was seen recently, following the US Fed’s indication that it may be raising interest rates soon appears to have paused now.
- What this means: The US Federal Reserve minutes, which highlighted that the Fed may be on the verge of hiking interest rates in the near future, caused a global knee-jerk reaction, in the form of an equity sell-off. This has caused markets to stumble for the last few days, leading to increased investor anxiety. Thus, signs of this sell-off pausing and markets recovering today have been welcomed by investors and buoyed market sentiments.
Stock markets: Key highlights
- The FTSE 100 (.UK100) index inched up 0.49% to 7482.1 points
- The Euro Stoxx 50 (.EU50) index also climbed 1.34% to 4296.1 points
- Germany’s DAX (.DE40) index rose 1.19% to 15955.3 points
- France’s CAC 40 (,FR40) index advanced 1.40% to 7215.2 points
- The leading sectors in the UK were transportation and finance, whereas
- US S&P 500 futures inched up 0.40% to $4681.0
- The CBOE Volatility Index, or VIX (.VIX), a measure of expected fluctuations in US stocks, dropped to 19.20
- The US dollar index inched lower to $95.93
- The US 10-year bond yield index fell to 1.769%
Top stock gainers: the UK and Europe
- The top stock gainers in the UK were International Consolidated Airlines Group, Barclays and BP
- International Consolidated Airlines Group shares gained following Citigroup’s report highlighting that long-haul flights are likely to outperform short-haul flights in the near future
- Barclays shares rallied following the company winning the Shetty debt case
- BP shares increased following the company recently hiring a bunker buyer from Equatorial Marine Fuel
- The best-performing companies in Europe were Dechra Pharmaceuticals, Croda International and Scottish Mortgage Investment Trust
- Dechra Pharmaceuticals shares rose following the company purchasing the global rights to the verdinexor drug
- Croda International shares advanced following the company’s recent announcement that it would be selling the majority of its industrial chemicals and performance technologies
Top stock losers: the UK and Europe
- The worst performing companies in the UK were Adidas, Prosus and AB InBev
- Adidas will soon launch the new Yeezy Foam Runner Navy
- Prosus’ CEO Bob van Djik recently purchased approximately $10m worth of the company’s shares
- AB InBev shares fell as the company looked towards expanding into the non-alcoholic beverages sector
- The top stock losers in Europe were Shell, Air Liquide and AXA
- Shell came under fire along with BP for making approximately £5.5bn in profits, whereas petrol and diesel drivers faced ongoing issues
- Air Liquide recently made deals with Iveco and Redexis regarding hydrogen refuelling stations for long-haul vehicles
- AXA recently announced a partnership with CoreLogic, for parametric hail risk