European Markets Bounce Back as Wall Street Ends Losing Streak

European markets were higher on Tuesday, following a three-day losing streak on Wall Street. The pan-European Stoxx 600 rose 0.6% by early afternoon, with mining stocks leading gains. Asian markets also saw gains, with Hong Kong’s Hang Seng index and South Korea’s Kospi both up over 1.4%. Investors are now looking ahead to key U.S. inflation figures later in the week, which will help shape the Federal Reserve’s monetary policy decisions. Additionally, second-quarter earnings season in the U.S. is set to kick off, with major financial institutions such as BlackRock, JPMorgan Chase, Wells Fargo, and Citi all due to report. In Europe, concerns about high inflation were deepened as U.K. wage growth hit a joint-record high in the three months to May.

In other news, the ZEW German economic sentiment indicator slid further into negative territory in July, while economic expectations across the wider euro area also dropped. British online grocer Ocado saw its shares climb 4% after its first robotic warehouse in Asia went live. On the other hand, British powder metallurgy company Dowlais Group fell over 7% after receiving a “sell” rating from Citi.

Meanwhile, the

How did the European markets rebound from a three-day slump on Wall Street?

Excitement swept through European markets on Tuesday, as they rebounded from a three-day slump on Wall Street. The pan-European Stoxx 600 sprang to life, climbing 0.6% by early afternoon. Leading the charge were the mining stocks, bringing a wave of optimism. Across the globe, Asia also experienced a surge, with the Hang Seng index in Hong Kong and South Korea’s Kospi both flourishing by over 1.4%.

Now, all eyes are fixed on the key U.S. inflation figures scheduled to be unveiled later in the week. These figures hold immense power, as they will shape the Federal Reserve’s all-important monetary policy decisions. And over in the U.S., anticipation is mounting for the start of the second-quarter earnings season, with financial giants like BlackRock, JPMorgan Chase, Wells Fargo, and Citi preparing to report their results.

However, in Europe, concerns heightened as U.K. wage growth soared to a joint-record high in the three months leading up to May, deepening fears of rampant inflation. As if that wasn’t enough, the ZEW German economic sentiment indicator took a dismal slide further into negative territory in July, sending shockwaves through the market. Economic expectations across the broader euro area also experienced a downward shift.

Amidst all this, British online grocer Ocado witnessed its shares skyrocket by 4% after launching its first robotic warehouse in Asia. On the flip side, Dowlais Group, a British powder metallurgy company, wasn’t so fortunate, as it tumbled more than 7% following a “sell” rating from Citi.

So, amidst a sea of ups and downs, the European markets proved resilient, signaling a renewed sense of hope.