European shares failed to follow Asian shares and Wall Street higher Tuesday, as indices trade in the red in the early afternoon. A mixture of earnings reports kept investors subdued, while uncertainty over higher inflation remains.
By around 1310 BST, the EUROSTOXX 600 was trading 0.11% in the red and the EUROSTOXX 50 lost 0.29%. The German DAX was down 0.16%, the French CAC was 0.11% lower, while the Spanish IBEX was 0.54% in negative territory.
After a positive finish Monday, European investors appear cautious Tuesday and haven’t retained the positivity from the US and some Asian indices.
Analysts said concern over higher inflation and rising bond yields remains firmly fixed in many investor’s minds. Meanwhile, a stronger euro is also weighing on stocks.
“European markets are failing to follow through on yesterday’s bounce and a decent performance overnight in Asia,” said Neil Wilson, senior market analyst at ETX Capital, in a research note, according to a Market Watch report.
“A lack of volume yesterday on Wall Street suggests there is not a huge amount of interest in this recovery just yet and may be a signal that this is not a reversal in a secondary downtrend,” Wilson added.
European stock moves
Amid that backdrop, the overall trend among European shares is negative, despite some positive earnings results, Tuesday.
Luxury-brand owner Kering shares are a case in point. The European owner of Gucci and Yves Saint Laurent reported strong 2017 and fourth quarter earnings earlier Tuesday, driven by a ‘spectacular’ performance by Gucci.
However, that wasn’t enough to lift Kering shares, which were down 2.95% at €368.80.
Other fallers included:
- Aurubis shares fell 4.68% to €76.54, as the German based copper producer reported disappointing earnings results.
- Telenet shares lost 3.43% to €59.20 after the Belgian telecoms business reported its own 2017 earnings.