ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
Featured Posts
    • Latest News
    Investors fret over durability of summer rally in US markets
    • August 19, 2022
    • Companies
    Privatising water was never going to work
    • August 19, 2022
    • Latest News
    Cineworld prepares for US bankruptcy filing
    • August 19, 2022
    • Companies
    WWE: body-slammed boss dives out as new champ grapples sale rumours
    • August 19, 2022
    • Markets
    Net zero targets: Ask what you can do for your country . . . 
    • August 19, 2022
Featured Categories
Belarussia
View Posts
Companies
View Posts
Energy
View Posts
Environment
View Posts
Food
View Posts
Governance
View Posts
Health
View Posts
Investors
View Posts
Latest News
View Posts
Markets
View Posts
Potash
View Posts
Regulators
View Posts
Russsia
View Posts
Social
View Posts
Supply Chain
View Posts
Sustainable Finance
View Posts
Technology
View Posts
Uncategorized
View Posts
ESG Telegraph ESG Telegraph
7K
9K
4K
1K
ESG Telegraph ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
  • Markets

European stocks rise as traders await fresh batch of tech earnings

  • January 31, 2022
  • Staff
Total
0
Shares
0
0
0

European stocks rose on Monday, as investors looked ahead to earnings reports later this week from US technology titans Alphabet and Facebook owner Meta.

The regional Stoxx 600 index was up 1 per cent in early dealings after closing 1 per cent lower on Friday. London’s FTSE 100 added 0.3 per cent. In Asia, Hong Kong’s Hang Seng and Tokyo’s Nikkei 225 both traded 1.1 per cent higher, with the Hang Seng Tech sub-index rallying more than 2 per cent.

Investors have had to navigate increasingly choppy conditions since the start of the year, balancing persistently high rates of inflation and the likelihood of tighter monetary conditions with a mixed set of fourth-quarter results from Wall Street’s biggest companies.

Apple, the world’s most valuable company by market capitalisation, last week posted record revenue in the fourth quarter of 2021, sending its share price 7 per cent higher and helping Wall Street’s technology-heavy Nasdaq Composite index to a small marginal gain for the week. Fellow tech behemoths Google parent Alphabet and Meta are set to reveal their latest quarterly figures on Tuesday and Wednesday, respectively.

The index has nonetheless slipped some 12 per cent this calendar year, dragged lower by the potential for higher borrowing costs to erode the present value of companies’ future cash flows, and by disappointing results from the likes of Netflix. The broader-based S&P 500 index — which hit a record high as recently as January 3 — had fallen 7 per cent over the same period as of Friday’s close.

Those declines have come as officials at the US Federal Reserve have signalled that interest rates may have to rise faster and more aggressively to tackle inflationary pressures in the world’s largest economy.

Raphael Bostic, president of the Fed’s Atlanta branch, stuck to his call for three quarter-point interest rate increases in 2022 in an interview with the Financial Times over the weekend. But he said a more aggressive approach could include raising the federal funds rate by half a percentage point, double its typical amount.

However, Randeep Somel, fund manager at M&G Investments, said the Fed remained “very conscious of making a policy error and having to go back and cut rates if the market slows down”.

January’s decline, he added, constituted an adjustment rather than the start of a bear market proper, and “the market will settle down”.

Investors are also weighing up how to respond, should a conflict erupt in Ukraine. Oil prices could rise above $100 a barrel if Russian president Vladimir Putin were to cut natural gas supplies to Europe, according to Anatole Kaletsky at Gavekal Research.

“This would result in a global inflation crisis comparable to the one that followed the 1973-74 Arab oil embargo,” Kaletsky wrote in a note on Monday. “A drastic tightening of monetary policy and a profound bear market both in bonds and equities would likely follow.”

Brent, the international benchmark, rose 1 per cent to $90.89 a barrel on Monday.

In government debt markets, the yield on the two-year US Treasury note, which closely tracks inflation expectations, rose 0.02 percentage points to 1.19 per cent. The 10-year yield was broadly steady at 1.77 per cent. Bond yields move inversely to prices.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You May Also Like
Read More
  • Markets

Net zero targets: Ask what you can do for your country . . . 

  • Staff
  • August 19, 2022
Read More
  • Markets

More smelters face threat of closure as Europe enters a power-starved winter

  • Staff
  • August 19, 2022
Read More
  • Markets

FT Cryptofinance: Bitcoin needs a story to sell

  • Staff
  • August 19, 2022
Read More
  • Markets

UK’s FCA fines Citigroup £12.5mn for trading oversight failures

  • Staff
  • August 19, 2022
Read More
  • Markets

Gandalf’s weak mea culpa | Financial Times

  • Staff
  • August 19, 2022
Read More
  • Markets

UK short-term borrowing costs set for biggest weekly jump since 2009

  • Staff
  • August 19, 2022
Read More
  • Markets

Investing in volatile times: Alphaville’s top tips

  • Staff
  • August 19, 2022
Read More
  • Markets

Middle East states set for $1.3tn oil windfall, says IMF

  • Staff
  • August 19, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Featured Posts
  • 1
    Investors fret over durability of summer rally in US markets
    • August 19, 2022
  • 2
    Privatising water was never going to work
    • August 19, 2022
  • 3
    Cineworld prepares for US bankruptcy filing
    • August 19, 2022
  • 4
    WWE: body-slammed boss dives out as new champ grapples sale rumours
    • August 19, 2022
  • 5
    Net zero targets: Ask what you can do for your country . . . 
    • August 19, 2022
Recent Posts
  • UK health body calls for upgrade to sewage system as beaches close
    • August 19, 2022
  • How Tiger Global withdrew its claws when the tech bubble burst
    • August 19, 2022
  • More smelters face threat of closure as Europe enters a power-starved winter
    • August 19, 2022

Sign Up for Our Newsletters

Subscribe now to our newsletter

ESG Telegraph
  • Home
  • Privacy Policy
  • Guest Post
  • Contact

Input your search keywords and press Enter.