3 months ago
54
European stocks opened higher Tuesday, in the wake of a global sell-off fueled by concerns over a potential artificial intelligence breakthrough in China that could pose a massive challenge to Western AI firms.
The regional Stoxx 600 index was up 0.28% at 8:10 a.m. in London, with technology stocks 0.5% higher. Media stocks led gains, up 1%.
Biopharmaceutical firm Sartorius was the top performer on the index, gaining nearly 16% after the company said in a preliminary full-year release that it had met profitability targets and had a "cautiously positive" outlook for 2025.
Earnings are out from SAP, Foxtons Group and Logitech on Tuesday, with luxury giant LVMH reporting after the market close, while data releases include the latest French consumer confidence figures and Spain's unemployment rate.
Regional markets traded in negative territory on Monday as investors in the region reacted to a potential AI breakthrough out of China, with the success of Chinese artificial intelligence startup DeepSeek sparking concerns over incumbent U.S. giants' global leadership in AI.
ING to sell off Russian business to Global Development JSC
Dutch bank ING announced it will sell off its business in Russia to Moscow-based financial investor Global Development JSC.
The deal will effectively close ING's activities in Russia, with the sale expected to be completed in the third quarter of this year. Specific terms of the sale have not been disclosed.
The Dutch banking and financial services firm also said that it has not taken any new business with Russian entities since the start of the Russia-Ukraine war in 2022.
— Abby Ryanto
Software giant SAP beats profit estimates, upgrades outlook
Germany's SAP on Tuesday reported a 25% increase in adjusted operating profit to 8.153 billion euros ($8.512 billion) for the full year 2024, above the 22% increase flagged in a company-compiled analyst poll.
Revenue rose 11% in its core cloud and software businesses for the period, slightly ahead of consensus estimates.
Europe's largest software maker also revised its operating profit outlook to 10.3 billion to 10.6 billion euros, up from a previous target of 10.2 billion euros. Analysts at JPMorgan said the upgrade was ahead of expectations.
SAP said that it met or exceeded all its financial outlook goals for 2024, in what CEO Christian Klein said was a "strong finish to the year."
Shares were up 2% pre-market following its results release.
SAP share price.
— Abby Ryanto
Fed will most likely cut rates twice more this year, strategist says
Sam Stovall, chief investment strategist at CFRA Research, sees two more rate cuts on the horizon for 2025.
"Our base case is that they cut interest rates twice this year, once in the second quarter, and then once again in the fourth quarter," he told CNBC in a Monday interview.
As for this Wednesday's FOMC meeting, Stovall is in agreement with many investors who believe that the U.S. central bank will most likely hold rates steady.
— Lisa Kailai Han
Apple overtakes Nvidia as world's most valuable company
Apple became the most valuable publicly traded company once again on Monday, after Nvidia's rout sent its market value plummeting. Microsoft also surpassed the chipmaker, landing in the number two spot.
Shares of Nvidia tumbled 13.5% on concerns over possible competition from Chinese startup DeepSeek, which claims it launched a free, open-source language model at a fraction of the cost of its competitors.
Apple's market cap currently sits near $3.4 billion, while Microsoft is at $3.2 billion. Nvidia's market cap is just shy of $3.1 billion.
Just last week, Nvidia had reclaimed the top spot, replacing Apple as the most valuable company.
— Michelle Fox, Nick Wells
European markets: Here are the opening calls
European markets are expected to open higher Tuesday.
The U.K.'s FTSE 100 index is expected to open 21 points higher at 8,522, Germany's DAX up 73 points at 21,356, France's CAC up 14 points at 7,926 and Italy's FTSE MIB up 70 points at 36,471, according to data from IG.
Earnings come from SAP, Foxtons Group, Logitech and LVMH on Tuesday, while data releases will include the latest French consumer confidence figures and Spain's unemployment rate.
— Holly Ellyatt
English (US)