European stocks rose Tuesday as investors look ahead to the next U.S. inflation data on Wednesday and track comments from the Federal Reserve. The pan-European Stoxx 600 closed 0.8% higher, partially reversing Monday’s 1.8% decline. Technology stocks added 1.9%, leading the gains as investor fears of higher interest rates appeared to ease somewhat. At the top of Europe’s blue-chip index, shares of Swedish cloud computing company Sinch rose nearly 10% after Goldman Sachs initiated coverage on the company’s stock with a buy recommendation.
U.S. stocks gained again Tuesday as Wall Street appeared to regain its footing after a bumpy start to the new year. Stocks were volatile earlier in the year as rising interest rates pressured equities. But on Tuesday, interest rates cooled, and the yield on 10-year Treasury bonds dipped below 1.75%. Large-cap technology stocks supported the broader market, with Amazon up 2.4% and shares of Apple and Nvidia up about 1.7% and 1.5%, respectively.
Chinese markets rose in early trading today, following gains in other Asia-Pacific markets. The Hang Seng tech index rose 3.7%, Tencent gained 2.57% and Alibaba climbed 2.71%. According to Reuters, China’s consumer price index rose 1.5% in December from a year earlier – a drop from November’s 2.3% increase and less than the 1.8% rise expected in a Reuters poll. Factory prices rose 10.3% from a year earlier. This is a slowdown from the 12.9% increase in November and less than the 11.1% expected in the Reuters poll.
Real estate giant moves out of Shenzhen to cut costs
China’s cash-strapped real estate giant Evergrande has moved out of its Shenzhen headquarters to cut costs. Evergrande said it has moved to a property it owns but is still in the same city. Rival Shimao Group said Tuesday it is in talks with potential buyers for some properties to reduce its debt. The companies have come under heavy pressure in the past six months after Beijing curbed corporate borrowing. China’s property crisis is estimated to have reduced the value of the sector by more than $1 trillion last year. Evergrande, the world’s most indebted property developer, is struggling to settle more than $300 billion (£220 billion) of its debt and has missed payments on its offshore debt.
Tesla sold a record number of China-made vehicles in December
U.S. electric carmaker Tesla sold 70,847 China-made vehicles in December, the highest monthly rate since it began production in Shanghai in 2019, data from the China Passenger Car Association (CPCA) showed Tuesday. Tesla’s December sales, including 245 for export, were nearly three times higher than the same month last year and 34% higher than sales in November. That brings Tesla’s total sales in China to at least 473,078 cars last year. This is according to Reuters calculations based on data from the CPCA, which had not published figures on Tesla’s exports of cars manufactured in China before April.