European stocks close slightly higher
European stocks closed slightly higher on Tuesday, as market participants await U.S. and European inflation data later in the week.
The pan-European Stoxx 600 provisionally ended 0.2% higher, with most sectors in positive territory.
— Sam Meredith
There is a ‘slightly postive skew’ on oil demand for the first time in a while, strategist says
Vikas Dwivedi, global energy strategist at Macquarie Group, discusses the state of energy markets, saying they’ve become used to the idea that geopolitical tension does not always mean oil barrels will be lost.
France’s Eurofins tumbles 11% on earnings miss
Shares of French laboratory testing group Eurofins were 11% lower at 11:26 a.m. London time on Tuesday, after full-year results missed expectations for earnings per share.
The company reported adjusted net profit of 568 million euros ($616.5 million) and adjusted earnings per share of 2.71 euros, down from 3.43 euros in 2022.
— Jenni Reid
GRANOLAS stocks power Europe to record highs
Over the last 12 months, just 11 stocks made up half of the gains that powered the pan-European Stoxx 600 stock index to a record-high close on Friday.
Earlier this month, Goldman Sachs highlighted that Europe’s stock markets were dominated by this group of “internationally exposed quality growth compounders” with the continent’s largest market caps, which the bank termed the GRANOLAS back in 2020.
The momentum of this group — which comprises GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, AstraZeneca, SAP and Sanofi — has drawn comparisons to the “Magnificent Seven” U.S. tech giants and evoked similar concerns about concentration risks in European equity markets.
Read more here.
— Elliot Smith
Investment firm Abrdn up 5% on full-year results
Shares of Scotland’s Abrdn were up 4.8% at 9 a.m. in London, after the investment firm reported a 5% fall in adjusted operating profit to £249 million ($315.9 million).
The annual profit result was ahead of analyst estimates, according to Reuters.
The owner of retail investment platform Interactive Investor saw net operating revenue 4% lower at £1.398 billion.
The company has come under pressure in recent years amid growing client outflows, with shares falling for the last four years.
It said Tuesday its cost-cutting program was targeting annualized cost reduction of at least £150 million by the end of 2025, intended to restore its investments business to “an acceptable level of profitability,” with the loss of around 500 roles expected this year.
It forecast adjusted operating expenses around £60 million lower in 2024, with its cash margin roughly level.
— Jenni Reid
Correction: This post has been updated to clarify Tuesday’s jobs announcement.
Europe stocks open slightly higher
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 25, 2024.
Staff | Reuters
Europe’s Stoxx 600 index opened 0.04% higher Tuesday, as sectors traded mixed.
Major bourses were narrowly higher, with the U.K.’s FTSE 100, France’s CAC 40 and Germany’s DAX all up by around 0.1%.
Stoxx 600 index.
UK shop price inflation lowest in nearly two years
Shoppers at a shopping center in Birmingham, United Kingdom, on February 11, 2024.
Nurphoto | Nurphoto | Getty Images
Inflation in U.K. retail slowed to 2.5% in February, a fall from 2.9% in January and the lowest rate since March 2022, the British Retail Consortium said Tuesday.
Non-food inflation was steady at 1.3%, while food inflation moderated from 6.1% to 5% in its 10th consecutive decline.
“Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope,” BRC CEO Helen Dickinson said.
— Jenni Reid
CNBC Pro: How to invest $100,000 right now, according to the pros
Equity markets have had a good start to the year, with the S&P 500 benchmark crossing 5,000 earlier this month and Europe’s Stoxx 600 index hitting an all-time high.
Looking ahead, market consensus sees “a perfect combination of bullish factors,” according to Wells Fargo Investment Institute’s Paul Christopher — but he’s not so sure.
As investors ponder how — and where — to invest in this uncertain climate, CNBC Pro asked market experts where they recommend allocating $100,000.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: This stock is even ‘hotter’ than Nvidia — and it’s ‘not that overpriced,’ veteran investor says
Nvidia isn’t the only star of the artificial intelligence boom — in fact, there’s an even “hotter” one right now, according to Louis Navellier, chairman and founder of Navellier & Associates.
“They beat their guidance. And it’s not in the S&P 500 right now. They’ll probably be added,” he said of the stock.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are set to open lower Tuesday.
The U.K.’s FTSE 100 index is expected to open 13 points lower at 7,671, Germany’s DAX down 41 points at 17,390, France’s CAC 13 points lower at 7,913 and Italy’s FTSE MIB down 57 points at 32,560, according to data from IG.
Earnings are set to come from Ferrovial, Serco Group, Travis Perkins and Abrdn. The latest French and German consumer sentiment data will be published Tuesday.
— Holly Ellyatt
