London (AFP) – Stock markets rose Tuesday, with rebounding technology share prices helping Asian indices in particular. Oil prices climbed 1.0 percent as Iran targeted US radar and air defense installations in the Gulf. Tech stocks have dived in recent sessions on fears of excessive valuations in the artificial intelligence (AI) sector, with chipmakers leading the rout.
But on Monday, Wall Street’s tech-heavy Nasdaq index advanced, aiding a recovery across Asia on Tuesday. “Big Tech earnings now need to prove that AI revenues, margins, and cash flow can justify the scale” of the huge investments in AI infrastructure, noted Stephen Innes of SPI Asset Management. Evidence of this will come thanks to tech sector earnings due over the coming days, with results from Tesla and Alphabet, followed by Microsoft, Meta, Apple, and Amazon next week.
Europe’s main stock markets saw modest gains in midday deals, with London’s benchmark FTSE 100 index reacting positively to the appointment of John Healey as finance minister. “John Healey’s surprise appointment…hasn’t troubled the markets as he is seen as a safe pair of hands,” said Dan Coatsworth, head of markets at AJ Bell. Investors were watching British bond yields after new Prime Minister Andy Burnham — taking on stretched public finances — said he would remove tax on household electricity bills.
Elsewhere, oil prices climbed as Iran stepped up its attacks in the Middle East, two weeks after its war with the United States resumed. “Oil remains the key macro anchor,” Sucden brokers wrote in a research note to clients. “We expect markets to remain headline-driven in the near term.”
On the corporate front Tuesday, General Motors raised its full-year profit forecast after reporting solid quarterly results. The big US automaker reported $1.3 billion in profits, down 31 percent from the year-ago period. North American auto sales fell during the period, although GM’s results topped analyst estimates on strong pricing, an earnings release showed ahead of Wall Street’s reopening.
– Key figures around 1100 GMT –
London – FTSE 100: UP 0.3 percent at 10,552.08 points
Paris – CAC 40: UP 0.3 percent at 8,366.88
Frankfurt – DAX: UP 0.4 percent at 24,941.95
Tokyo – Nikkei 225: UP 3.3 percent at 66,232.19 (close)
Hong Kong – Hang Seng Index: FLAT at 25,132.29 (close)
Shanghai – Composite: UP 1.8 percent at 3,864.37 (close)
Brent North Sea Crude: UP 1.0 percent at $90.11 per barrel
West Texas Intermediate: UP 1.0 percent at $83.28 per barrel
Pound/dollar: DOWN at $1.3416 from $1.3438 on Monday
Euro/pound: UP at 85.12 pence from 84.95 pence
Euro/dollar: UP at $1.1423 from $1.1416
Dollar/yen: UP at 162.68 yen from 162.48 yen
© 2024 AFP
