European stocks end the day higher as robust profits bolster...

European stocks end the day higher as robust profits bolster investor confidence; technology is up 2.7 percent.

Capital Markets CIO Outlook | Wednesday, December 01, 2021

FREMONT, CA:On October 13th, European equities finished higher as robust results helped to counter concerns about global growth and inflation. After starting the session in the negative, the Stoxx 600 ended up 0.7 percent higher. Stocks in the technology sector gained 2.6 percent, while banks sank 1.6 percent. European investors were analysing the latest inflation figures from the United States. The consumer price index increased 0.4 percent month over month and 5.4 percent year over year in September, according to the Labor Department, compared to forecasts of 0.3 percent monthly and 5.3 percent yearly in a Dow Jones survey of economists.

Stock markets in the United States edged higher on Wednesday as investors analysed new inflation data and third-quarter profit reports. On Wednesday, JPMorgan Chase surpassed forecasts with a $1.5 billion profit from lower-than-expected loan losses, while Delta Air Lines also exceeded revenue projections. Meanwhile, fears about global growth remain prominent. The International Monetary Fund (IMF) said on Tuesday that it is now less enthusiastic about the global economy for 2021, but that it still predicts decent growth over the medium term in its new report.

Shares in mainland China climbed early Wednesday morning in Asia-Pacific markets as investors reacted to the announcement of Chinese trade data for September. Exports exceeded estimates, but import growth lagged, according to data issued by the customs office on Wednesday. Traders are nonetheless apprehensive of the risks associated with inflation, economic growth, and rising energy prices. Russian President Vladimir Putin told CNBC's Hadley Gamble on Wednesday that the Kremlin is not using energy as a weapon against Europe, but that Moscow remains ready to assist the EU if the region's energy problem persists.

On the data front in Europe, the United Kingdom's GDP increased by 6.9% in August over the same time last year, slightly exceeding the Reuters consensus expectation of 6.7 percent. According to the Office for National Statistics, the British economy is presently 0.8 percent lower than it was pre-Covid.

In addition, the International Energy Agency (IEA) released its World Energy Outlook 2021 report on Wednesday, warning that renewable energy progress was "far too slow" to "place global emissions into persistent decline towards net zero."

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