Live Markets: European futures rise on tech-led enthusiasm
22/01/2024 07:38
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EUROPEAN FUTURES RISE ON TECH-LED ENTHUSIASM
European shares were set to rise at the open on Monday,
driven by enthusiasm over a tech-led rally on Wall Street that
has pushed the S&P 500 .SPX to its first record-high close in
two years.
EuroSTOXX50 and FTSE futures rose 0.9 and 0.4% respectively,
while S&P 500 contracts pointed to an extension of Friday's
rally, as traders geared up for results this week from tech
heavyweights including Tesla TSLA.O and Netflix NFLX.O .
In Europe, the reporting season was starting to gather speed
and one key focus for investors will be which companies can
preserve their profit margins against a complex geopolitical and
macroeconomic backdrop.
Net profit margins for the STOXX 600 .STOXX peaked at
16.1% in the Q1 of 2023, but are expected to have fallen to
10.1% in Q4, according to LSEG I/B/E/S data.
On Thursday, the focus will turn to the European Central
Bank for any clues about timing of interest rate cuts later in
the year.
For the session ahead, deal-making provided some leads.
French gaming company La Francaise des Jeux FDJ.PA
launched a takeover offer for European online peer Kindred
KINDsdb.ST , in a deal it said would create the second-biggest
operator in Europe's gaming sector.
Sandoz SDZ.S agreed to buy Cimerli, a biosimilar drug to
treat vision impairment and loss, for $170 million.
In the battered payments sector, Credit Agricole CAGR.PA
disclosed a 7% stake in Worldline WLN.PA , saying the move was
part of a wider strategic partnership to forge a 'major player
for commercial payment services in France.
(Danilo Masoni)
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FOR MONDAY'S OTHER LIVE MARKETS POSTS:
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