European stocks gain led by banks

The Stoxx Europe 600 Index edged higher, as gains in banks and Italian equities offset declines posted by tech shares.

Jun 04, 2019 10:06 IST India Infoline News Service

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Stocks in Europe reversed earlier losses on Tuesday as investors attempted to shrug off negative sentiment following Monday’s rout in technology shares.

The Stoxx Europe 600 Index edged higher, as gains in banks and Italian equities offset declines posted by tech shares. Markets in Asia traded mixed. Futures on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 all reversed earlier losses. Treasuries were set to halt a one-week rally that was driven by speculation the Federal Reserve will cut interest rates.

The euro struggled to hold its advance after regional inflation data fell slightly short of expectations. The pound erased a gain after data showed UK retail sales in May declined by the most on record.

Investors are trying to find their feet after the threat of antitrust probes into some of the biggest U.S. tech companies heaped pain onto already fragile markets on Monday, triggering a rout in names like Facebook and Amazon.com. A week chock-full of major economic indicators also got off to a troubled start, with a measure of American manufacturing activity falling in May to the lowest level of Donald Trump’s presidency. Bank of America and Citigroup have lowered their US corporate profit forecasts while pointing out the risk of a recession amid a trade war.

Source: Bloomberg 

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