European Stock Futures Edge Higher: UBS, HSBC Releasing Earnings By

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By Peter Nurse – European stock markets are expected to open marginally higher Tuesday, continuing the previous session’s positive tone as investors digest quarterly earnings from the banking sector ahead of the release of a key guide of German business sentiment.

At 02:00 ET (06:00 GMT), Germany’s contract traded 0.1% higher while France’s contract rose 0.6% and the U.K. contract rose 0.1%.

European equity markets began the week strongly with both the and posting gains of 1.6% Monday. Wall Street gains followed closely as investors bet on a slowdown in economic growth to push the Federal Reserve into a more hawkish stance. 

Investors are now focusing on the quarterly corporate earnings season. Investment banks will report this week.

UBS (SIX): The Swiss banking giant UBS reported a 24% drop in third quarter net profit due to a decline of market activity. However, it beat expectations due a rise in client funds.

London-based rival HSBC reported a 42% drop of pretax profits in the third quarter due to losses on its French unit and rising bad debts. However, its interest income surged as rates rose around the globe.

Swiss drugmaker elsewhere Novartis (SIX 🙂 saw a drop of 4% quarterly operating income due to competition on Gilenya multiple sclerosis drug prescriptions. Norsk Hydro (OL 🙂 however, posted strong third quarter profits that were well above expectations.

Also, SAP (ETR 🙂 reported slower revenue growth than expected and a decrease in profits for its third quarter.

Investors will also study the October release of the , which is expected to show another drop in confidence in the Eurozone’s largest economy.

Germany is on the verge of recession due to Russia’s energy standoff and rising prices.

Oil prices edged higher Tuesday, helped by dollar selling, but gains were limited by continued concerns of slowing global demand growth, particularly from China, the world’s largest importer of crude.

The dollar edged lower in early trading, making commodities that are dollar-denominated, such as oil, less costly for foreign buyers.

The latest estimate of U.S. crude oil inventories, from the , is due later in the session, and is expected to rise this week after last week’s surprise 1.3 million barrel fall.

At 02:00 ET, the barrel was trading 0.1% higher at $84.66 per barrel while the contract rose 0.1%, to $91.31. 

The price of gold dropped 0.1% to $1652.30/oz and traded flat at 0.9874

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