By Jack Denton
European stocks climbed higher on Tuesday after opening in the red, as investor concerns persist over the volatility in technology stocks against the backdrop of rising bond yields.
Both the pan-European Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.05% and London’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.15% index were 0.3% higher. The CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.28% in Paris rose around 0.1% and Frankfurt’s DAX /zigman2/quotes/210597999/delayed DX:DAX -0.13% lifted 0.2%.
Dow futures /zigman2/quotes/210598065/realtime DJIA -0.58% were pointing up more than 200 points, set for a strong open to continue the Dow’s /zigman2/quotes/210598065/realtime DJIA -0.58% march higher after the index closed at a record high of 31,802 on Monday.
Major European markets opened lower across the continent but reversed course in early Tuesday trading to push into the green. Germany’s DAX continued into record high territory for the second straight day.
“As European markets opened lower this morning, it’s been a more subdued start to proceedings, after another record-breaking session for the DAX yesterday, and a new record high for the Dow,” said Michael Hewson, an analyst at CMC Markets.
“Even though we’ve edged back into positive territory, it is becoming increasingly difficult to interpret what effect the continued volatility in tech stocks could have on wider sentiment after the Nasdaq’s big falls yesterday,” Hewson added.
The Nasdaq /zigman2/quotes/210598365/realtime COMP -0.96% tumbled a further 2.4% in Monday trading, with the index now down more than 10% since highs in mid-February. The fall in tech stocks has come amid rising bond yields. Nasdaq futures /zigman2/quotes/210598365/realtime COMP -0.96% were pointing up around 2% on Tuesday.
Chinese state funds have stepped in to buy stocks amid a worsening bear market, according to a report from Bloomberg . The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.78% ended the day 1.82% lower and is down more than 9% since highs in late February.
Elevated oil prices have the major European-listed oil stocks continuing their climb higher. Benchmark Brent crude rose around 0.6%, approaching the $68.70 per barrel mark after touching $70 on Monday. Shares in BP /zigman2/quotes/202286639/delayed UK:BP +0.56% , Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA +0.52% , Total /zigman2/quotes/202868361/delayed UK:TTA +3.31% , and Eni /zigman2/quotes/209584888/delayed IT:ENI +0.33% all surged, outpacing gains in major indexes.
But metals and mining stocks represent the other side of the commodities seesaw. Industrial metals in particular have fallen, with copper /zigman2/quotes/210054311/delayed HG00 +1.19% down more than 1% and iron ore futures for April down near 6%. Shares in London-listed Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +2.28% , BHP /zigman2/quotes/203323256/delayed UK:BHP +1.06% , Anglo American /zigman2/quotes/201381512/delayed UK:AAL +0.95% , Antofagasta /zigman2/quotes/200173667/delayed UK:ANTO -4.30% , and Glencore /zigman2/quotes/201400686/delayed UK:GLEN +0.17% , which are all major miners of copper or iron, were among the largest fallers in London trading.
Fresnillo /zigman2/quotes/201300065/delayed UK:FRES +3.46% stock was higher as precious metals gold /zigman2/quotes/201432642/composite GOLD +3.58% and silver /zigman2/quotes/210315219/delayed SI00 +3.38% surge. The company is a major gold miner and the world’s largest silver miner.
Shares in Domino’s Pizza Group /zigman2/quotes/203506006/delayed UK:DOM -2.69% , the mid-cap FTSE 250-listed U.K. franchisee of the American pizza company, jumped more than 12% after full-year results firmly beat expectations. The company also announced a £88 million return to shareholders through dividends and buybacks.
DAX-listed Continental /zigman2/quotes/206791451/delayed XE:CON +0.07% , a major automotive parts manufacturer, was a major faller in German trading following the release of full-year results. The shares were more than 5% lower, after the company said sales fell from €44.5 billion in 2019 to €37.7 billion in 2020.
Shares in British television channel ITV /zigman2/quotes/205378065/delayed UK:ITV -1.52% opened near 7% lower, settling down 2%, after full-year results partially missed expectations. Group revenues fell 16% across 2020 while operating profit slumped more than 33% amid production disruptions due to the COVID-19 pandemic and a decline in advertising business.