European equity markets ended fairly mixed on Tuesday, following fairly volatile trading sessions, as investors would like to remain cautious after the recent heavy sell-off across the global equity markets.
DAX and the London benchmark index extended losses by 0.25% and 0.65% respectively, as risk appetite was limited. However, CAC and IBEX managed to end on the positive territory, tracking a recovery in Wall Street.
It seems that investors try to get benefitted from the recent low levels in the global equity markets, while better than expected economic data from the US and Eurozone supported the upside momentum in today’s trading session.
UK Markit PMI jumped to 64.6 in January compared to 61.3 in December, beating expectations, while Eurozone’s producer prices also increased by 0.2% in December.
In the US, factory orders fell by 1.5%, less than analysts expected, spreading an optimistic tone across the US equity markets with Dow Jones climbing by almost 100 points.
In London, heavy losses in technology and telecommunication companies offset gains in banks and financial stocks. Arm Holdings retreated sharply by 5.91% after reporting fairly poor earnings results that missed analysts’ expectations, dragging the index lower.
Tomorrow, the main focus will turn to the release of the Markit Services PMI data from the Eurozone, UK and the US as well as the Eurozone’s retail sales figures and the US ADP national employment data, which could give a useful insight about the US employment conditions ahead of the release of the US non-farm payroll data on Friday.