European markets edge higher, brushing off Wall Street losses

European stocks inched into positive territory on Tuesday with regional investors brushing off losses on Wall Street on Monday.

.FTSE FTSE 100 *FTSE 7049.49 38.48 0.55 55052519
.GDAXI DAX *DAX 15052.54 15.99 0.11 5900031
.FCHI CAC 40 Index CAC 6500.93 23.27 0.36 7825152
The pan-European Stoxx 600 added 0.3% in early trade, with banks climbing 1% to lead gains while construction and material stocks bucked the upward momentum to slip 0.4%.

The positive start for Europe comes despite concerns over losses in Wall Street in the previous trading session that saw the tech-heavy Nasdaq Composite fall more than 2%.

Tech heavyweights Apple, Alphabet, Amazon and Microsoft all fell at least 2% while shares of Facebook slipped 4.9%. The blue-chip Dow shed more than 300 points, while the S&P 500 lost 1.3%. U.S. stock futures were muted in early premarket trading on Tuesday.

Skittishness in the U.S. market has been prompted by a recent jump in bond yields that has caused investors to flee highly valued tech stocks, as higher rates make their future profits less attractive. The 10-year Treasury yield traded slightly up at 1.48% on Monday after hitting a high of 1.56% last week.

The losses rattled markets in Asia-Pacific overnight, and shares in the region declined. In Japan, the Nikkei 225 dropped more than 2%, briefly entering correction territory briefly before paring some of its losses. Markets in mainland China remain closed on Tuesday for the holidays.

On the economic data front, French industrial output climbed 1% in August from the previous month, outstripping a Reuters consensus forecast of 0.3%, and accelerating from the 0.5% monthly growth seen in July.

The latest Italian GDP reading and final purchasing manager’s index (PMI) data from across the euro zone are also due on Tuesday.

In terms of individual share price movement, British bakery chain Greggs added 3.2% after a raising its profit forecast on the back of strong sales.

“Like many businesses, Greggs now faces the harsh bite of the supply chain crises. However, the baker may have been more prepared than most competitors as it reportedly stockpiled ingredients and equipment from 2019; its early actions may have seemed extreme at the time but will now help it shake off some supply chain challenges others are facing,” said Julie Palmer, partner at British professional advisory firm Begbies Traynor.

At the bottom of the Stoxx 600, Denmark’s GN Store Nord fell more than 7% after cutting the 2021 revenue growth forecast for its hearing aid unit.

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