European stocks close higher
Stoxx 600 index.
European stocks closed higher on Tuesday, with the index rising Stokes 600 The index ended the session higher by 1.1%.
The German DAX index led the major stock exchanges with gains of 1.6%, while the French CAC 40 index rose 0.8%. The UK's FTSE 100 index posted a second straight record close after rising 0.25%.
-Jenny Reed
British stocks lag major exchanges, and sterling rises after comments from the Bank of England's chief economist
FTSE 100 index.
UK stocks remained in positive territory on Tuesday afternoon, with blue chips leading FTSE 100 index The index rose 0.25% at 3:50 pm London time, after Bank of England chief economist Hugh Bell gave a speech that many investors viewed as hawkish.
Stock gains were smaller than they were earlier in the session and lagged behind the German DAX index, which rose by 1.35%, and the French CAC 40 index, which rose by 0.7%.
British stocks rose during Monday's session, with the FTSE 100 hitting a record closing high amid growing expectations of a summer interest rate cut from the Bank of England.
Bell said on Tuesday that his baseline at the beginning of March was that “the time for a bank rate cut is still some way off.”
“The combination of little news and the passage of time made the central bank cut interest rates somewhat. But the same lack of news gives me no reason to move away from the baseline I had already set,” he said.
the British poundWhich fell by 0.5% against the US dollar on Monday, and regained 0.7% on Tuesday.
US crude oil falls to its lowest level since March, falling below the 50-day moving average
An aerial view shows a pump operating at an oil well in Grayhorse, Oklahoma, on September 29, 2023.
Chandan Khanna | AFP | Getty Images
The price of US crude oil recorded its lowest level during the session at $80.89 per barrel on Tuesday, its lowest level since late March.
the West Texas Intermediate June futures also fell below the 50-day moving average of $81.22 per barrel for the first time since early February.
West Texas Intermediate crude was last trading at $81.51 per barrel, down 39 cents, while the June price was Brent Futures fell 36 cents to $86.64 a barrel.
Traders lowered prices after rising early this month on fears that Iran and Israel were on the brink of war. Those fears were largely dispelled after the enemies indicated that they were not interested in a broader war after exchanging blows this month.
The market was also unconcerned with the impending oil sanctions on Iran. Over the weekend, the House of Representatives approved legislation targeting ports, ships and refineries that accept Iranian oil. The Senate could consider the legislation this week.
-Spencer Kimball
US stocks open higher
US stocks opened higher on Tuesday, with Wall Street focused on a new slate of upcoming technology earnings.
The S&P 500 added 0.4% shortly after the opening bell, while the Nasdaq Composite rose 0.4%. The Dow Jones Industrial Average rose 124 points, or 0.3%.
– Brian Evans
The Bank of England's chief economist says a rate cut may be some way off
Blurred buses pass in front of the Bank of England in the City of London on February 7, 2024 in London, United Kingdom.
Mike Kemp | In pictures | Getty Images
The Bank of England's chief economist, Hugh Bell, sounded a hawkish note on Tuesday, indicating that the expected interest rate cut may not come as soon as expected.
While lower inflation made a potential cut “somewhat closer,” Bell said there was a greater risk of cutting rates too quickly rather than too late.
“The combination of little news and the passage of time has made a bank rate cut somewhat closer,” Bell said in a speech to the University of Chicago Booth School of Business, according to Reuters.
“But the same lack of news gives me no reason to move away from the baseline,” he added, referring to the more restrictive stance announced previously.
As of Monday, markets were anticipating an initial quarter-point cut from the Bank of England in August.
– Karen Gilchrist
Business activity in Europe improved
Business activity in the euro zone expanded in April as growth in the bloc's services sector offset weakness in manufacturing, new data showed on Tuesday.
The preliminary euro zone HCOB Composite Purchasing Managers' Index, compiled by S&P Global, rose to 51.4 this month, up from 50.3 in March and ahead of the 50.7 expected.
Meanwhile, the UK business sector also showed signs of strength, with the S&P Global Purchasing Managers' Index rising to a stronger-than-expected level of 54 in April, up from 52.8 the previous month.
– Karen Gilchrist
Stocks move: AB Foods up 9.5%, Randstad down 6%
shares Associated British foods The company's stock rose 9.5% after it raised its forecast and interim dividend amid easing inflationary pressures on its food brands and improving sales at flagship retailer Primark.
Meanwhile, Dutch staffing company Randstad fell 6% after a bigger-than-expected drop in first-quarter profits as hiring conditions weakened.
– Karen Gilchrist
European stocks open higher with the FTSE hitting a record high
European stocks opened higher on Tuesday, with the Stoxx 600 index up 0.6% by 8:05 a.m. London time.
The UK's FTSE 100 rose 0.5% to an all-time high on the day, while France's CAC 40 rose 0.3% and Germany's DAX rose 0.8%.
Stokes 600.
Novartis raises guidance after first-quarter results exceeded expectations
Novartis said in August that it plans to spin off its generics unit Sandoz to increase its focus on patented prescription drugs.
Bloomberg | Bloomberg | Getty Images
Swiss pharmaceutical maker Novartis The company raised its full-year guidance after announcing better-than-expected first-quarter results led by the success of products including heart failure drug Entresto and psoriasis drug Cosentyx.
The company said net sales for 2024 were scheduled to grow by a high-single-digit to low-double-digit percentage, while adjusted operating income was expected to grow by a low-double-digit to mid-digit percentage.
It previously expected adjusted operating income to rise by a “high-single-digit” rate and sales growth to rise by a “single-digit” rate.
– Karen Gilchrist
Renault sales rose 1.8% in the first quarter
The Renault Scenic electric vehicle (EV) at the Munich Motor Show (IAA) in Munich, Germany, on Tuesday, September 5, 2023.
Bloomberg | Getty Images
French automaker Renault on Tuesday reported a 1.8% increase in first-quarter revenue, driven by strong performance in its financing business.
The company sold 549,099 units in the three-month period, and total revenue reached 11.7 billion euros ($12.47 billion). This is slightly higher than the company's consensus of a slight annual decline to €11.49 billion.
– Karen Gilchrist
CNBC Pro: When Tesla shares fall, these 6 stocks tend to rise, according to recent history
CNBC Pro: 'Bargain' energy stocks: Morningstar strategist picks 5 stocks to buy as oil prices fall
Rising geopolitical tensions have led to volatility in crude oil prices, but one strategist is keenly looking for opportunities in the energy sector.
It was among the laggards last year, but things have changed with many stocks now trading near their all-time highs.
Stephen Ellis, energy and utilities strategist at Morningstar, said oil market volatility presents challenges and urged investors to be patient, which “is regularly paying dividends in the energy space.”
However, he said there are “selective trades” in the market currently and revealed five energy stocks he currently likes.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
European Markets: Below are the opening calls
European markets are set to open in positive territory on Tuesday, building on the gains seen at the start of the new trading week.
United kingdom FTSE 100 index The index is expected to open 39 points higher at 8,070 points in Germany Dax It rose 117 points to 17,969 points for France Kak 36 points higher at 8057 and Italy FTSE MIB indicator It rose 98 points to 33,628, according to IG data.
Earnings are set to come from Renault, Kering, OVH and Novartis, and Associated British Foods will also release interim results. On the data front, Eurozone manufacturing and primary services PMI data will be published in April.
– Holly Eliatt
