- European stocks rallied Tuesday as investors in the region recouped losses on Wall Street earlier in the week. The pan-European Stoxx 600 closed up 1.2%, with banks leading the gains with a 3.4% rise, while technology stocks added 2.1%. On the economic data front, final purchasing managers’ indices (PMI) from across the eurozone showed that business growth in September was dampened by inflationary pressures and supply chain issues. The final IHS Markit Composite PMI came in at 56.2 last month, down from 59.0 in August. Anything above 50 indicates expansion.
- The major indexes rebounded on Tuesday after the market slumped in the previous session, especially in the technology sector. Mega-cap tech stocks were solidly in the green Tuesday. Netflix rose 5.2%, while Amazon gained nearly 1%. Apple and Alphabet rose 1.4% and nearly 1.8%, respectively. Facebook shares rose 2% after falling 5% Monday on whistleblower allegations and a website outage. Stocks tied to the economic recovery, such as cruise lines, airlines, retailers and banks, also rose with the broader market.
- Stocks in the Asia-Pacific region were mixed in early trading after Wall Street recovered from Monday’s losses overnight. The Reserve Bank of New Zealand (RBNZ) raised its benchmark interest rate to 0.5% this morning, joining South Korea and Norway as the first countries to raise rates in the pandemic era.
Pepsi profit beats estimates despite higher supply chain costs
PepsiCo on Tuesday raised its full-year guidance after its latest quarterly results and revenue beat analysts’ expectations despite higher costs and supply chain bottlenecks. Net income for the quarter ended Sept. 4 was $2.22 billion, or $1.60 per share. That’s down from $2.29 billion, or $1.65 per share, a year earlier. Excluding items, the food and beverage giant earned $1.79 per share, beating expectations of $1.73 per share from analysts polled by Refinitiv. Net sales rose 11.6% to $20.19 billion, beating expectations of $19.39 billion.
Volvo says shift to electric cars is the reason for its $2.9 billion IPO
The CEO of Volvo Cars has told CNBC that the automaker’s shift to electric vehicles is the reason behind its planned IPO on Nasdaq Stockholm. The company is looking to raise 25 billion Swedish kronor, or $2.9 billion, through the IPO, which will be one of the largest in Europe this year. “We have very strong investor interest in investing in EV companies and that is growing all the time,” he said.