European Stocks Gain on Positive Earnings, Iron Ore Prices Jump
European stocks saw a boost on Wednesday, with positive earnings from major companies lifting the mood after recent market volatility. The Stoxx Europe 600 index gained about 0.4%, with miners leading the advance as iron ore prices surged on signs of improving demand from China.
Rio Tinto Plc rose as much as 2.2% after the miner expressed optimism about steel exports from China supporting iron ore demand. Adidas AG also saw a significant increase, climbing more than 5% after raising its revenue and profit outlook. Luxury sector leader LVMH also contributed to the positive trend with reassuring results, while Volvo AB reported robust earnings.
However, the technology sector weighed on the benchmark, with ASML Holding NV plunging more than 6% after missing first-quarter order estimates.
In the midst of these market movements, Treasury yields remained near 2024 highs, and the dollar held steady near a five-month high following Federal Reserve Chair Jerome Powell’s comments on inflation. Powell suggested that it may take longer to have confidence that inflation is moving toward the central bank’s target, leading to a shift in market expectations for interest rate cuts.
Meanwhile, tensions in the Middle East added to market uncertainty, with Israel considering a response to the first attack on the country from Iranian soil. Saudi Arabia and the United Arab Emirates issued a joint statement calling for self-restraint to avoid the dangers of war in the region.
As markets continue to react to various economic and geopolitical factors, key events to watch this week include Eurozone CPI data, Fed announcements, and speeches from central bank officials.
Overall, European natural gas prices edged higher, while oil prices dipped as traders awaited Israel’s response to the recent Middle East tensions. Gold remained near a record high as investors sought safe-haven assets.
In other market news, cryptocurrencies saw mixed movements, with Bitcoin rising slightly and Ether remaining relatively stable. Bond yields and commodity prices also experienced minor fluctuations.
This news story was produced with the assistance of Bloomberg Automation, highlighting the ongoing developments in global markets.
