European stocks stable
European stocks were largely flat on Tuesday following earnings from blue-chip companies such as HSBC and BP, while UBS became the latest bank to disclose a hit from dealing with U.S. investment firm Archegos.
The pan-European STOXX 600 index slipped 0.1%, with a record high for travel & leisure stocks and gains in energy shares offsetting losses in automakers.
Oil major BP rose 1.9% after its first-quarter profit soared due to stronger oil prices and bumper revenue from natural gas trading. Asia-focused lender HSBC gained 1.7% after it reported an upbeat quarterly profit as successful vaccine rollouts in key markets promised a brighter economic outlook. Meanwhile, UBS fell 2% to a near 11-week low as it took an unexpected $774 million hit from Archegos, overshadowing a forecast-beating 14% rise in quarterly net profit.
Still, European markets were caught in a tight trading range ahead of the U.S. Federal Reserve’s policy decision on Wednesday, with policymakers expected to confirm that they will maintain easy monetary policy to bolster the economy.
Global stocks have hit record highs recently on optimism about a economic recovery as the pace of vaccination picked up across developed economies. About a quarter of STOXX companies are set to publish earnings this week. Among the 17% that have reported so far, 65% topped profit estimates, according to Refinitiv IBES data.
Copper prices hit a 10-year high over supply worries in top producer Chile and as investors hope for an improvement in global demand amid a stable economic recovery. Threemonth copper on the London Metal Exchange hit $9,965 a tonne, its highest since March 2011, before retreating.
Oil rebounded after top oil producers stood by their demand forecasts, but there are still downside risks due to surging COVID-19 cases in India, the world’s third-biggest oil importer. Brent crude was 0.5%, at $65.94 a barrel and U.S. oil gained 0.6% at $62.24.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.