European Markets Close Higher on Recovery Hopes; Credit Suisse Cuts Dividend

Tolga Akmen | AFP via Getty Images
  • Credit Suisse announced several high-level staff departures and cut its dividends and bonuses in the wake of a $4.7 billion hit from the Archegos Capital Management saga.
  • The IMF hiked its global growth forecast on Tuesday, but warned of "daunting challenges" for the global economy given the varying rates of vaccine rollouts.

European markets closed higher on Tuesday as trading resumes after the Easter holiday, with global sentiment boosted by positive economic data in the U.S. and China.

The pan-European Stoxx 600 provisionally ended the session up 0.7%, with basic resources adding 1.8% to lead gains as most sectors entered positive territory.

European stocks bucked the trend seen in Asia-Pacific, where markets were mixed Tuesday despite China's services sector activity growing in March, according to a private sector survey.

Stateside, stocks fluctuated on Tuesday after the Dow Jones Industrial Average and the S&P 500 closed at record highs the previous session on the back of a bumper U.S. jobs report on Friday.

The big corporate news out of Europe Tuesday was the announcement by Credit Suisse of several high-level staff departures and cuts to its dividends and bonuses. The Swiss bank announced it was taking a $4.7 billion hit as a result of the Archegos Capital Management saga.

The Swiss lender now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($960.4 million). Credit Suisse shares were down 0.4% by the market close.

The IMF hiked its global growth forecast on Tuesday, but warned of "daunting challenges" for the global economy given the varying rates of vaccine rollouts.

The organization now expects the world economy to grow by 6% in 2021, up from its 5.5% forecast in January. Looking further ahead, global GDP for 2022 is seen increasing by 4.4%, higher than an earlier estimate of 4.2%.

In terms of individual share price movement, Swedish stock brokerage firm Avanza climbed 7.2% to lead the Stoxx 600, while at the opposite end of the benchmark Swiss telecoms firm Swisscom slid 5.1%.

Shares of several European food delivery services fell Tuesday as investors questioned whether their pandemic-fueled growth could last as economies begin to reopen. In Britain, Just Eat Takeaway and Ocado fell 1.3% and 0.7% respectively, while in Germany Delivery Hero sank 1.2% and HelloFresh dipped 1.6%.

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