Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com - European stocks rose Tuesday, buoyed by the news of a U.S.-China tariff truce extension, as investors awaited the release of key U.S. inflation data.
At 03:10 ET (07:10 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.5% and the FTSE 100 in the U.K. rose 0.4%.
U.S.-China tariff truce boosts sentiment
Global investors remained focused on the Trump administration’s tariffs, and sentiment received a boost after the U.S. and China extended their tariff truce late on Monday for another 90 days, averting sharp duties that could have disrupted trade.
The move will see the world’s biggest economies keep relatively lower tariffs in place against each other until November 10, and will also keep in place a recent reopening in U.S. chip exports and Chinese rare earths.
U.S. tariffs on China will remain between 30% and 50%, while Chinese tariffs on U.S. goods will be around 10% to 20%. The two had agreed in May to slash their tariff levels from over 100%.
U.S. CPI looms large
European investors will study the release of the Germany ZEW economic sentiment for August later in the session for clues about the health of the eurozone’s largest economy.
Earlier in the session, data showed that the U.K. unemployment rate stayed at 4.7% in the three months to June, the highest level since July 2021, while pay growth across the whole economy, excluding bonuses, remained at an annual 5.0% rate.
The day’s key economic release, however, will be the U.S. consumer inflation report for July, as investors attempt to better understand the impact of Trump’s tariffs and how that influences the Federal Reserve’s rate cut path.
The annual CPI figure is forecast to rise to 2.8% from 2.7% in June, remaining stubbornly above the Fed’s stated 2% target.
Hannover Re impresses with Q2 results
Quarterly corporate earnings are starting to peter out as August continues, but there are still some results to digest.
Hannover Re (OTC:HVRRY) posted a 38% jump in second-quarter net income from a year earlier, driven by improved underwriting performance in property and casualty reinsurance and a stronger reinsurance service result.
Homebuilder Bellway (LON:BWY) swung to a net cash position of £42 million at the end of fiscal 2025 from net debt of £10.5 million a year earlier, as housing completions and revenue came in ahead of guidance.
Gaming company Entain (LON:ENT) lifted its full-year profit guidance after posting a healthy gain in first-half profit, driven by strong online growth and a 35% revenue surge at U.S. joint venture BetMGM.
Crude gains on U.S.-China tariffs pause
Oil prices edged higher Tuesday as the extension of the pause on higher tariffs between the United States and China eased concerns of a hit to global economic growth in the world’s two largest oil consumers.
At 03:10 ET, Brent futures climbed 0.3% to $66.81 a barrel, and U.S. West Texas Intermediate crude futures rose 0.4% to $64.20 a barrel.
Potentially weighing on the oil market, Trump and Russian President Vladimir Putin are due to meet in Alaska on Friday to discuss an end to the war in Ukraine.