July 23 2024: European shares opened flat on Tuesday, with gains in the technology sector offset by declines in metal mining stocks. The pan-European STOXX 600 index remained steady at 514.9 points as of 0715 GMT, following its best performance in over a month on Monday.
Earnings Drive Tech Rally:
Investor attention was drawn to earnings updates from major tech companies:
SAP shares surged 6.2% after the European software giant reported a 25% increase in its cloud business and exceeded analysts’ revenue estimates for the second quarter.
Logitech International saw a 2.3% rise in its stock after the computer peripheral maker raised its full-year sales and profit outlook, driven by strong quarterly growth.
These positive earnings reports led to a nearly 1% advance in the technology sub-index.
Miners Weigh on Index:
The benchmark index was weighed down by a 1.5% decline in metal miners. This sector faced pressure as copper prices dropped due to concerns over demand from top consumer China.
ECB Policy Outlook:
In an interview with Europa Press, European Central Bank Vice President Luis de Guindos indicated that new data and macroeconomic projections would be crucial for the ECB’s reassessment of its monetary policy stance in September.
Summary:
European stocks opened flat on Tuesday as gains in the technology sector, fueled by strong earnings from SAP and Logitech, were offset by declines in metal mining stocks due to concerns over Chinese demand for copper. The STOXX 600 index remained unchanged after a strong performance on Monday.
