Major European bourses attempted to rebound on Tuesday, with the STOXX 50 trading flat to higher and the STOXX 600 gaining 0.2%, following losses in the previous session, which were driven by concerns over rising AI competition from China that sparked a selloff in the tech sector.
Stocks in Europe attempt to rebound
ASML Holding added 0.5%, after sinking 7.5% on Monday and Infineon gained 0.1%, after dropping 2%. Meanwhile, investors also shifted their focus to corporate earnings, with mixed reactions to quarterly reports coming from major companies.
SAP up after positive outlook
SAP shares gained about 2% after the company revised its operating profit outlook higher to €10.6 billion and said that it met or exceeded all its financial outlook goals for 2024. The positive revision helped lift investor sentiment despite broader market volatility. Sartorius jumped about 12% after topping forecasts on earnings and reporting strong BPS orders, signaling that demand for its products remains robust. The strong performance of these companies indicated that select sectors were outperforming, despite broader market challenges.
Eyes on global indicators
In addition, investor attention is also being directed toward global economic indicators, as many market participants await upcoming data on inflation, GDP growth, and employment figures that will provide further insight into the state of the economy. The European Central Bank's stance on interest rates also remains a key point of focus, with any signs of dovishness potentially providing a boost to the markets. As such, the rebound in European stocks on Tuesday was supported by both positive corporate earnings and a cautious optimism that the economic environment may stabilize in the near term, despite ongoing geopolitical and economic uncertainties.
