By Peter Nurse
Investing.com - European stock markets traded higher Tuesday, boosted by optimism in the U.S. in the runup to President-elect Joe Biden’s inauguration as well as some upbeat earnings reports.
At 3:50 AM ET (0850 GMT), the DAX in Germany traded 0.2% higher, the CAC 40 in France rose 0.2% and the U.K.'s FTSE index climbed 0.4%.
The earnings season is getting fully underway in Europe. Logitech (NASDAQ:LOGI) stock soared 6% after the Swiss-U.S. computer peripherals maker raised its 2021 outlook for sales growth and profit for the third time, benefitting from the Covid-inspired work-from-home trend.
Additionally, Rio Tinto (NYSE:RIO) stock rose 0.6% after the mining giant reported a 2.4% rise in fourth-quarter iron ore shipments, helped by industrial activity in top consumer China.
On the flip side, Superdry (LON:SDRY) stock slumped 8.5%, dragging the fashion sector lower, after the retailer’s losses deepened due to fresh restrictions in the U.K. imposed during the key Christmas season.
Later in the session, U.S. Treasury Secretary nominee Janet Yellen will testify before the Senate Finance Committee later Tuesday as part of her confirmation hearing, and is set to defend the $1.9 trillion Covid-19 relief plan unveiled by President-elect Joe Biden during the past week.
Some fear that the relief plan, designed to boost growth in the world’s largest economy, will have to be watered down to get through opposition from Republican lawmakers in the Senate.
Back in Europe, the Covid-19 virus continues to cause havoc. France's average daily new infections hit a six-and-a-half week high on Monday, Portugal's daily death toll reached a record high, while in Germany Vice-Chancellor Olaf Scholz called for an extension and tightening of lockdown measures that are due to expire on Jan. 31. German federal and state government officials are due to meet later to decide on fresh measures.
The release of the latest survey of economic sentiment from Germany’s ZEW will attract attention later Tuesday, but the 3.3% drop in passenger car registrations in December in the European Union provided an indication of the impact of the new mobility restrictions hitting the region.
Oil prices pushed higher, helped by signs of growth in China, the world’s largest crude importer, and optimism over U.S. stimulus measures with fears for fuel demand as Covid-19-induced lockdowns continue globally.
U.S. crude futures traded 0.5% higher at $52.66 a barrel, while the international benchmark Brent contract rose 1.2% to $55.38.
Elsewhere, gold futures rose 0.7% to $1,843.35/oz, while EUR/USD traded 0.3% higher at 1.2113.