Europe before the bell: appetite for tech, bank results
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EUROPE BEFORE THE BELL: APPETITE FOR TECH, BANK RESULTS
Even though Microsoft MSFT.O failed to impress high Wall Street expectations, with growth in its cloud business falling a little short of what analysts had estimated, appetite for tech looked strong again on Wednesday following July's rout.
Futures on the tech-heavy Nasdaq NQc1 rose over 1.4% first thing in European hours as chip designer AMD AMD.O lifted its 2024 forecast for AI chip sales and said supplies would remain tight through 2025.
Dutch group ASML ASML.AS meanwhile surged over 7% in early Frankfurt trade after Reuters reported that the new U.S. rule on foreign chip equipment exports to China will exempt some allies, including Japan, the Netherlands and South Korea.
In Europe, the focus was on banks too, following results from London-listed heavyweight HSBC HSBA.L, coming just as the sector .SX7P reclaimed this month from tech .SX8P the top stop in STOXX rankings, with a YTD surge of over 21%.
HSBC pledged to buy back $3 billion in shares after reporting stable H1 profit on growth in wealth management and narrowing loss in Chinese real estate. Its Hong-Kong listed stock rose over 3% on the announcement.
In Spain, BBVA BBVA.MC reported a 38% rise in Q2 net profit thanks to a solid domestic performance, where it wants to buy smaller rival Sabadell SABE.MC to reduce its reliance on Mexico, its main market.
Besides tech and banks, it was another heavy day for earnings releases in Europe.
Among the early releases, airline Lufthansa LHAG.DE forecast an earnings slump as costs rise, adding to gloomy updates in the sector. Drugmaker GSK GSK.L raised its forecasts after beating quarterly expectations boosted by its cancer and HIV portfolio.
EuroSTOXX50 STXEc1 futures rose 1%
(Danilo Masoni)
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