By Ankika Biswas and Joao Manuel Vicente Mauricio (Reuters) -Europe’s main stock index was set to snap a three-session streak of declines on Wednesday as technology stocks rebounded, while safe-haven bids took a backseat as investors monitored ongoing developments around the Ukraine-Russia conflict. A day after Russia lowered its threshold for a nuclear strike, Reuters […]
By Ankika Biswas and Joao Manuel Vicente Mauricio
(Reuters) -Europe’s main stock index was set to snap a three-session streak of declines on Wednesday as technology stocks rebounded, while safe-haven bids took a backseat as investors monitored ongoing developments around the Ukraine-Russia conflict.
A day after Russia lowered its threshold for a nuclear strike, Reuters reported Vladimir Putin’s openness to discuss a Ukraine ceasefire deal with U.S. President-elect Donald Trump, provided it rules out major territorial concessions and Kyiv abandons plans to join NATO .
The pan-European STOXX 600 was up 0.5% as of 0920 GMT, after touching a three-month low on Tuesday amid an investor rush to safe-haven assets.
Main bourses in Germany, France, and Spain advanced between 0.4% and 0.9%.
Supporting risky bets, the Swiss franc and U.S. government bond prices dipped, while the dollar touched a one-week low in early trade.
Despite (Tuesday’s) knee-jerk reaction to Russia-Ukraine concerns, I don’t think any investor is going to just put that off to one side because the world order is shifting somewhat,” said Danni Hewson, head of financial analysis , AJBell.
Focus is also on the U.S. President-elect’s administration appointments, including the search for a Treasury secretary. Wall Street CEO Howard Lutnick will lead Trump’s trade and tariff strategy.
“The biggest potential concern (on Trump appointments) is tariffs, because that would have a massive impact on European economy and thereby markets, particularly with the likes of inflation,” Hewson said.
Aiding the technology index’s 1% gain, Sage Group jumped 17% after announcing better-than-expected annual operating profit and the software firm’s launch of a 400-million-pound share buyback.
The tech sector’s performance outlook also hinges on quarterly results from the world’s most valuable company Nvidia, seen as a barometer for the sector’s shift to AI, due after market close.
Meanwhile, the ECB has warned about a “bubble” in AI-related stocks, which could burst abruptly if investors’ rosy expectations are not met.
Boosting the construction and materials index, Holcim rose 3% after J.P. Morgan upgraded the building material supplier’s stock to “overweight” from “neutral”.
ArgenX gained 4% after the Belgian biotech company announced progress in the development of its flagship drug Vyvgart.
La Française des Jeux fell 5.5% after Credit Agricole Assurances unveiled plans to sell 2.2% of the French gaming group’s share capital.
British Land slipped 3% after the commercial property firm posted a marginal half-year profit rise.
Elsewhere, UK stocks underperformed regional peers with a 0.3% gain after domestic inflation came in above the central bank’s 2% target last month, underscoring the BOE’s caution on rate cuts.
(Reporting by Ankika Biswas and Joao Manuel Mauricio in Bengaluru; Editing by Subhranshu Sahu and Devika Syamnath)
