Euro markets gain, eighth session for FTSE 100

Euro markets gain, eighth session for FTSE 100

European stock markets ended higher on Tuesday, boosted by encouraging economic data from China and as investors continued to closely monitor corporate earnings announcements.

The Pan-European STOXX 600 closed up 0.4% at 468.62 points, remaining at a more than 12-month high. Travel and leisure led the gains, with the STOXX Europe 600 Travel & Leisure index gaining 2.1% and rising to its highest level since November 2021.

Investor sentiment was boosted today by data showing China’s economy grew 4.5% in the first quarter after the end of severe COVID-19 restrictions.

Across the board, Germany’s DAX gained 0.6% to 15,882.67 points, while France’s CAC 40 rose 0.5% to 7,533.63 points.

Britain’s FTSE 100 gained 0.4% to 7,909.44, gaining ground for the eighth straight session in its longest streak in 29 months.

In the region, Italy’s FTSE MIB gained 0.7%, while Spain’s IBEX 35 rose 0.5%.

Meanwhile interest continues to be dominated by quarterly earnings announcements as investors try to assess the company’s profitability path in an environment of high inflation and recession.

First-quarter earnings for companies in the STOXX 600 index are expected to fall 2.5 percent year-on-year, according to data from Refinitiv, as reported by Reuters.

Meanwhile, the European Central Bank’s chief economist, Philip Lane, today favored another rate hike at the next ECB meeting on May 4, although he noted that the size of the increase will depend on incoming data.

“Right now and for [την επόμενη συνεδρίαση] in two weeks, I think the base case is that we will have to raise rates in May. But as for what exactly we’re going to do, I won’t set a specific size,” the official told Bloomberg TV.