Europe open: Shares edge ahead on Wall St as investors eye PMIs
European shares made small gains at the open on Tuesday after stronger US markets as tech stocks rebounded on hopes of slower rate rises by the Federal Reserve.
The pan-regional Stoxx 600 index was up 0.06% at 0815 GMT. Most bourses were higher, but Britain’s FTSE 100 was lower on the back of higher public borrowing data driven by the cost of help with energy bills and soaring debt costs.
Continental stocks have made gains, despite expectations of more rate rises from the European Central Bank amid contrasting views by policymakers on the way ahead.
Investors are also eyeing survey data which is expected to show a slight improvement in eurozone business activity.
S&P Global's flash reading is expected to show the eurozone flash composite PMI edged up to 49.8 in January, a small improvement from 49.3 in December, as energy prices dropped and inflation moderated.
In Germany, consumer sentiment is set to improve for a fourth consecutive month in February as energy prices fall, according to a GfK institute survey.
In commodities, Brent crude oil traded lower to $87.96.
“Lower energy prices are helping consumer confidence rebound, with the latest snapshot of sentiment in Germany showing the highest reading since August. It’s another positive sign for companies fearing the effects of well-flagged interest rate rises, indicating that consumers are showing resilience, but they are still likely to stay cautious,” said Hargreaves Lansdown analyst Susannah Streeter.
“A retreat in gas prices, with the cold snap expected to end soon, is another welcome sign for companies and consumers. However crude prices are still hovering around the highest levels in seven weeks amid higher demand for oil in China.”
In equity news, shares in Norwegian salmon farmers SalMar and Mowi both made large gains.
Reporting by Frank Prenesti for Sharecast.com