European markets opened higher on Tuesday, with the FTSE 100 hitting an intraday record high as investors built on positive momentum from the previous session. The pan-European benchmark Stoxx 600 index was up 0.5% in early deals, with most sectors trading in positive territory. Tech stocks led gains, rising 1.8%, while mining stocks fell 0.7%. The U.K.’s FTSE 100 extended gains, rising 0.55% to trade at an all-time intraday high of 8067.73 by 8:10 a.m. London time, following its fourth daily gain on Monday and surpassing its previous record close set on Feb. 20, 2023. U.K. stocks were boosted, while sterling tumbled against the U.S. dollar as investors raised bets on a summer interest rate cut from the Bank of England.
Investors in Europe are looking ahead to bank earnings and keeping an eye on tech earnings stateside. Tesla was set to report during U.S. trading hours on Tuesday. In Europe on Tuesday, earnings came from Renault, Kering, OVH, Novartis, and Associated British Foods. On the data front, preliminary manufacturing and services purchasing managers index data for the euro zone in April was set to be released. Overnight, Asia-Pacific markets extended gains from Monday as investors looked toward flash business activity figures from Australia, Japan, and India. U.S. stock futures were little changed on Monday night.
European markets saw the majority of sectors trading in positive territory, with tech stocks leading gains. The U.K.’s FTSE 100 hit an intraday record high, surpassing its previous record close set in 2023. This positivity came despite mining stocks falling. Investors in the region were focusing on upcoming bank earnings and watching tech earnings in the U.S., with Tesla reporting during U.S. trading hours on Tuesday. Earnings reports were released from companies like Renault, Kering, and Novartis. Data on the euro zone’s manufacturing and services sectors was also set to be released.
In Asia-Pacific markets, gains extended from Monday as investors awaited flash business activity figures from Australia, Japan, and India. U.S. stock futures showed little change on Monday night. Overall, there was a sense of optimism in European and Asian markets, with positive momentum driving the FTSE 100 to a record high. This optimism was tempered by concerns about the performance of mining stocks and the potential for a summer interest rate cut from the Bank of England, which led to a drop in the value of sterling against the U.S. dollar.
The week ahead promised to be eventful as investors awaited earnings reports and economic data releases. With a focus on bank earnings and tech companies in the U.S., there was anticipation of market movements based on the performance of these key sectors. The positive start to the week in European and Asian markets provided a backdrop of optimism, but there were still uncertainties and potential risks looming. As the trading week progressed, investors would closely monitor developments in these key areas to gauge market sentiment and potential opportunities for growth.
