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On Tuesday, European markets edged higher, attempting to break out of a cautious tone prevalent globally at the start of the week. By late morning, the Pan-European Stoxx 600 had up 0.25 percent, with travel and leisure stocks adding 1.4 percent to lead advances, while banks dipped 0.6 percent.
The healthy skepticism in Europe mirrored a similar feeling in Asia-Pacific, where shares mainly increased in Tuesday trade, despite the fact that South Korean game maker Krafton plummeted in its launch. Concerns about the impact of Covid on global growth have weighed on investor sentiment, as countries grapple with the emergence of the virus’s highly transmissible delta version.
On Tuesday morning, U.S. market futures were slightly changed after the Dow Jones Industrial Average and S& P 500 slid from record highs in regular trade over fears of a recurrence of Covid-19 cases. Oil prices plunged 4% on Monday, prompting a sell-off in energy equities amid fears that a surge of Covid cases will lead to a demand slowdown. Norwegian Cruise Line and United Airlines, both recovery plays, were also down.
The rate of recovery in the United States and rising inflation, according to two Federal Reserve officials, may compel the central bank to begin raising interest rates. Shareholders will be watching for the latest consumer price index and producer price index data from the United States, which will be released on Wednesday and Thursday, respectively.
On Tuesday, Germany’s ZEW poll of economic confidence for August fell short of forecasts, falling to 40.4 from 63.3 in July. Reuters polled economists, who predicted a reading of 56.7. Hellofresh, Munich Re, ABRDN, and InterContinental Hotels Group were among the European companies that reported earnings on Tuesday.
After announcing on Monday that Delivery Hero had bought a stake in the company, Deliveroo shares soared 10.9 percent to top the Stoxx 600. Following a good second-quarter earnings announcement, Hellofresh rose more than 10%. Corbion, a Dutch chemicals manufacturer, slumped 5.6 percent after posting lower first-half profits and lowering its outlook.