European stock markets mixed, and slide in Chinese stocks
European stock markets were mixed following a successful first-quarter earnings season.
The pan-European Stoxx 600 index was flat, with telecoms shares retreating 0.73% and financial services advancing 1%.
Dutch health-tech firm Philips traded 12.43% higher, reporting steadier sales and profit ahead of expectations, but widened losses due to its turnaround and litigation confusion.
Credit Suisse has posted what could be the last profit in its 167-year history after an emergency sale to UBS. The Swiss lender disclosed that it experienced asset outflows of 61.25 billion Swiss francs during its first-quarter collapse.
The survey showed the mood of German companies was slightly better for April, with expectations improving, especially in manufacturing, but their current situation was difficult to assess.
US stock futures were lower as investors awaited higher corporate earnings from major tech companies Alphabet, Microsoft, Amazon, and Meta reported. Investors await the latest economic statistics, including first-quarter GDP. The data will further indicate a return to old performance in the world’s largest economy.
Last Friday, major US indexes closed lower for the week as earnings rose.
Philips shares advanced 9.72% in early trade as it reported first-half group sales of 4.23 billion euros, with comparable sales up 6%.
The Dutch company said the reduction was mainly due to its restructuring.
Two-day slide in Chinese stocks
The biggest two-day drop in Chinese shares this year means traders may lose hope of a market recovery as they reassess the risks ahead, including a fragile economy.
The CSI 300 benchmark closed 1.22% lower to undercut the key technical indicator as technology shares declined. That was compounded by a 2% pullback on Friday when foreigners sold the most stocks since late October.
Investors have been pinning their hopes on this earnings season. In April, global results outperformed major Chinese stock indexes, and a new wave of COVID threatened the new economic recovery ahead of the national holiday.
China was one of the most promising investment countries this year, but the market has struggled to regain momentum.
In Hong Kong, the Hang Seng index was down by 0.62%.
