European equity markets traded higher on Tuesday and remained on course to post strong gains for the quarter, with investors focusing on a busy calendar of economic releases and speeches from senior central bank officials scheduled later in the day.
The pan-European STOXX 600 gained 0.4% in early trading, putting the benchmark on track for a quarterly rise of 9.7%.
Germany’s DAX climbed 0.8%, while London’s FTSE 100 added 0.2% and France’s CAC 40 rose 0.3%. Italy’s FTSE MIB advanced 0.4%.
Italian equities outperform regional peers
Italian shares were set to deliver the strongest quarterly performance among Europe’s major markets, supported by significant gains in banking stocks following a wave of merger and acquisition activity over the past three months.
By comparison, the UK’s FTSE 100 continued to lag other European indices as investors remained cautious over Britain’s widening fiscal deficit and the government’s efforts to stimulate economic growth.
European markets have also underperformed their counterparts in the United States and Asia during the quarter, largely reflecting the region’s smaller exposure to large-cap technology companies.
Strong valuations across technology and artificial intelligence stocks helped lift both US and Asian equity markets to record highs earlier this year, despite heightened geopolitical tensions involving the United States and Iran.
Markets await Sintra speeches and key economic data
Attention is now turning to the European Central Bank’s annual forum in Sintra, Portugal, where policymakers are expected to provide further guidance on the outlook for interest rates.
Investors will closely monitor remarks from ECB Chief Economist Philip Lane, together with Executive Board members Isabel Schnabel and Frank Elderson, for fresh signals on the future direction of eurozone monetary policy.
The conference will conclude with a closely watched panel discussion featuring newly appointed Federal Reserve Chair Kevin Warsh, making his first major international appearance since taking office, alongside Bank of England Governor Andrew Bailey.
Maersk gains after raising outlook
Among individual stocks, shares in Maersk (TG:DP4A) rose around 3% after the shipping group upgraded its full-year earnings guidance.
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