BP Brakes Buyback, European Markets Also Held Back
European stocks moved sluggishly at the start of trading on Tuesday (February 10th), as investors digested company performance reports to gauge the strength of the region's economy. Sentiment was also dampened after BP weakened after the energy giant decided to halt its share buyback program.
Meanwhile, the Stoxx Europe 600 remained flat. The personal care and chemical sectors performed stronger, while energy and insurance weighed on the market—largely because the market was cautious about the future direction of earnings and demand.
The luxury sector brought a somewhat more lively mood. Kering surged sharply after sales at its main unit, Gucci, were better than expected. The effect was contagious: several European luxury stocks also surged, posting their biggest gains in months.
Despite the day's relative calm, European benchmark indices remained near their peaks as market participants remained confident in the growth narrative. Europe is also relatively safer than the US because technology stocks are less heavily weighted than Wall Street—so when market doubts about the AI theme began, Europe appeared more stable.
The next focus now shifts to the earnings season, particularly on consumer sentiment and the impact of the strengthening euro on corporate earnings. So far, profits at European issuers included in the MSCI Europe index have recorded slight growth, slightly above expectations.
In individual stocks, Philips strengthened after management said solid demand helped mitigate tariff pressures. Conversely, Standard Chartered weakened after the abrupt resignation of CFO Diego De Giorgi—rumors of a top management change usually immediately put the market on the brakes.
Source: Newsmaker.id
