London (AFP) – Europe’s main stock markets rose slightly on Tuesday but EasyJet’s share price was propelled higher on a positive outlook.
Asian stock markets had earlier mostly risen as traders took heart from a healthy run on Wall Street, though German political uncertainty kept pressure on the euro.
EasyJet’s annual net profit slumped by almost one third on strong competition and a Brexit-fuelled slump in the pound, the British no-frills airline revealed on Tuesday.
But its share price was up 5.6 percent at 1,349 pence in mid-morning deals on “signs of a break in the clouds ahead”, noted George Salmon, equity analyst at stockbroker Hargreaves Lansdown.
“Forward reservations are up on last year, and the trend for rising costs and lower prices is set to reverse in the coming months.”
Across the Atlantic, while concerns about the prospects for US tax reform continue to nag, optimism about the global economy provided some buoyancy to Wall Street, with all three main New York indices closing higher on Monday.
However, with the Thanksgiving holiday shortening the US trading week analysts do not expect much more guidance from New York in the next few days.
Still, Tokyo’s main stocks index jumped 0.7 percent Tuesday, led by exporters.
Among other markets, Hong Kong pushed to a 10-year high, with Tencent up 2.4 percent, extending Monday’s surge that makes it the first Asian member of the exclusive club of global firms with a market capitalisation above $500 billion.
The Chinese internet giant was about $520 billion, around the same as Facebook.
There was meanwhile little negative reaction to news that US President Donald Trump had redesignated North Korea as a state sponsor of terror, promising Monday to increase sanctions on it.
On currency markets the euro remained under pressure after German Chancellor Angela Merkel struggled to form a government following months of horse-trading with other parties failed.
The leader of 12 years indicated Monday she was ready to hold snap elections after the collapse of coalition talks at the weekend plunged Europe’s biggest economy into turmoil.
“Merkel said she did not favour a minority government because it wouldn’t bring the stability necessary to govern effectively,” said Greg McKenna, chief market strategist at AxiTrader.
“That suggests more talks but an increased chance of fresh elections in early 2018. How that plays out is going to be interesting for the euro and certainly the Brexit process as well.”
– Key figures around 1000 GMT –
London – FTSE 100: UP 0.1 percent at 7,393.79 points
Frankfurt – DAX 30: UP 0.2 percent at 13,081.4
Paris – CAC 40: UP 0.2 percent at 5,349.75
EURO STOXX 50: FLAT at 3,562.92
Tokyo – Nikkei 225: 0.7 percent at 22,416.48 (close)
Hong Kong – Hang Seng: UP 1.9 percent at 29,818.07 (close)
Shanghai – Composite: UP 0.5 percent at 3,410.50 (close)
New York – DOW: UP 0.3 percent at 23,430.33 (close)
Euro/dollar: DOWN at $1.1730 from $1.1733 at 2140 GMT
Pound/dollar: UP at $1.3239 from $1.3235
Dollar/yen: DOWN at 112.43 yen from 112.64 yen
Oil – Brent North Sea: UP 55 cents at $62.77 per barrel
Oil – West Texas Intermediate: UP 39 cents at $56.81
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