European stocks surge after the release of strong earnings

European markets

European stocks rose on Wednesday as strong earnings offset worries about global growth and inflation.

The pan-European Stoxx 600 gained 0.7%, while it has started the session in the red. Meanwhile, tech stocks jumped 2.6%, and banks declined by 1.6%.

According to the Labor Department, the consumer price index (CPI) gained 0.4% in September from the month prior and 5.4% year over year. Meanwhile, economists polled by Dow Jones expected surges of 0.3% monthly and 5.3% annually.

Furthermore, stock markets gained on Wednesday as investors digested the new inflation data and third-quarter earnings reports.

Remarkably, JPMorgan Chase topped expectations on Wednesday on the back of a $1.5 billion boast from better-than-anticipated loan losses. Significantly, Delta Air Lines also beat revenue expectations. 

Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo, and Citigroup are expected to report this week.

On Tuesday, the International Monetary Fund announced it was now less optimistic about the global economy for 2021. However, it still sees reasonable rise over the medium term. 

U.K. GDP was 6.9% up in August than the same period a year ago

In Asia, shares in mainland China increased as investors reacted to the release of Chinese trade data for September. According to data released Wednesday by the customs agency, the figures revealed exports topped expectations but import growth disappointed.

Additionally, traders are worried about uncertainties surrounding inflation, economic growth, and rising energy prices.

Russian President Vladimir Putin said that the Kremlin is not using energy as a weapon against Europe. He also added that Moscow is ready to help the region as its energy crisis resumes.

Additionally, U.K. GDP was 6.9% up in August than the same period a year ago. The data slightly exceeded a Reuters consensus forecast of 6.7%. According to the Office for National Statistics, the United Kingdom’s economy is now 0.8% below its pre-corona level.

Furthermore, the IEA’s World Energy Outlook 2021 report was published on Wednesday. It warned that clean energy progress remained far too slow to put global emissions into a sustained slump towards net zero.

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