Tech stocks lead European markets higher as bond yields continue to fall
European stocks climbed on Wednesday, led by the tech sector as bond yields continue to ease, while profits from Akzo Nobel, Aegon and ABN Amro and more.
The Stoxx Europe 600 SXXP index,
rose 1.4% to 47, after gaining 0.7% on Tuesday. The German DAX DAX,
rose by 1.4%, the French CAC 40 PX1,
rose 1.5% and the FTSE 100 UKX index,
was up 0.6%. EURUSD euro,
and GBPUSD pound,
have changed little.
The bond market has been at the center of the action lately as investors assess possible rises in interest rates around the world. Perceived hawkish comments from European Central Bank President Christine Lagarde have driven the euro higher in recent days. The yield of the 10-year German Bund TMBMKDE-10Y,
was down 3 basis points at 0.231%, while the Italian 10-year bond TMBMKIT-10Y,
fell 4 basis points to 1.79%.
This week, the focus will be more on US consumer price inflation for Thursday, as a Federal Reserve meeting and an expected interest rate hike loom for March. US Equity Futures YM00,
indicated a higher open for Wall Street as the 10-year Treasury note TMUBMUSD10Y,
yield also fell.
German data showed exports rose in December, but at a slower pace than imports, statistics office Destatis said on Wednesday.
Interest-rate-sensitive tech stocks benefited from easing bond yields, with shares of ASML Holding ASML,
up 2.6%, ASM International ASM,
up 2.6% and AMS-Osram AMS,
Several stocks were reacting to the earnings news. Shares of Ayden ADYEN,
led the winners, with shares up 11%, after the Dutch payments group reported a 62% increase in net profit in the second half and an optimistic outlook.
Stock Pandora PNDORA,
climbed nearly 6%, after the Danish jeweler offered a further 3.3 billion Danish kroner ($506.2 million) share buyback and said its current performance remains strong, with growth continues to profit. After releasing fourth quarter figures last month, Pandora said organic growth was 23% in January.
On the other hand, the shares of Aegon AGN,
fell 5%. The Dutch insurance and asset management company reported a significant increase in net profit for the fourth quarter of 2021, beating market expectations, and said it was continuing to cut expenses. However, analysts focused on the results which they saw as mixed and cautious advice from the group.
Akzo Nobel AKZO also reported,
whose shares rose 3% after the Dutch paint company announced plans for a new 500 million euro ($570.9 million) share buyback program after reporting higher net profit to market for the fourth quarter of the year.
Siemens Energy ENR,
shares rose 1.5%, after the German energy company posted a net loss for the quarter ended December 31, and announced an 11% drop in revenue, although this was in line with a warning from the company last month. This followed a profit warning from its subsidiary Siemens Gamesa Renewable Energy.
GlaxoSmithKline shares GSK,
increased by 0.5%. The COVID-19 vaccine maker posted an increase in net profit in the last quarter of 2021 that fell short of the consensus provided by the company, but sales beat expectations. Glaxo said it expects sales growth in 2022 of between 5% and 7% at constant exchange rates.
The pharma giant also said the spinoff of its consumer healthcare business was set to happen in mid-2022.