European Stocks Struggle, Tech Sector Offers Support

European Stocks Struggle, Tech Sector Offers Support/ANI

VoM News Desk | April 24, 2024 | 06:07 PM IST | Breaking News | Follow on Google News

European Stocks Struggle, Tech Sector Offers Support

European Stocks Struggle, Tech Sector Offers Support

European stocks faced challenges on Wednesday, with a rally in technology stocks barely offsetting disappointing earnings in the banking and luxury sectors.

The Stoxx Europe 600 managed a modest 0.2% gain, buoyed by a 2.5% rise in the tech sector. ASM International NV saw a surge after exceeding expectations in orders, while chipmakers were encouraged by an optimistic outlook from US peer Texas Instruments Inc.

However, the banking sector dragged down the index, with Lloyds Banking Group Plc missing lending income estimates. Additionally, Sweden’s largest property lender, Svenska Handelsbanken AB, reported first-quarter earnings below analyst expectations, causing its shares to plummet by as much as 11%. Luxury stocks, including Kering SA, also suffered losses after warning of profit declines due to slowing sales at Gucci, its largest brand.

In the US, equity futures advanced, with Nasdaq 100 contracts leading the way. Tesla Inc.’s gains contributed significantly to the Nasdaq rally. The MSCI Asia Pacific Index recorded its highest increase in a month, with chip-related stocks performing well.

Weakness in US business activity measures supported expectations for Federal Reserve policy easing this year, contributing to the positive market sentiment. Despite a slight uptick in the 10-year Treasury yield, the dollar remained stable. The S&P 500 experienced its strongest consecutive rally in two months, with chipmaker Nvidia Corp. leading the surge.

Source: Reuters

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