European stocks close higher as investors await U.S. inflation data
The pan-European Stoxx 600 closed up 0.8%, partly recouping Monday’s 1.8% decline. Tech stocks added 1.9% to lead gains as investor fears over higher interest rates appeared to cool slightly.
Global markets are focused on the latest U.S. inflation data due out this week; the U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.
Investors are looking for any clues from Fed officials as to the timing of interest rate hikes, too.
Testifying before a Senate committee on Tuesday, Federal Reserve Chairman Jerome Powell said he expects a normalized supply chain to help ease inflation pressures in 2022, but that the central bank stands ready to hike interest rates further than projected to battle consistently high inflation.
U.S. stocks were slightly higher Tuesday, breaking away from declines in recent days amid Powell’s comments. Asia-Pacific markets closed mixed overnight as investors remained concerned about inflation.
Earnings season starts
Among the top factors driving individual share price movement Tuesday was a slew of earnings announcements and trading updates.
U.K. cybersecurity company Darktrace rose almost 7% after raising its outlook on revenue growth, while analysts at Peel Hunt also upgraded the stock from “sell” to “hold.” And Germany’s Delivery Hero rose 5% after saying it expects its food delivery business to break even in the second half of 2022 following its acquisition of a majority stake in Spanish rival Glovo.
At the top of the European blue chip index, Swedish cloud computing firm Sinch surged nearly 10% after Goldman Sachs initiated coverage of the company’s stock with a “buy” rating.
On the opposite end of the spectrum, British board game maker Games Workshop slumped almost 11% after reporting a 4% drop in pre-tax profits. The company cited higher costs and supply chain disruptions as factors contributing to slower growth.
