{"id":122808,"date":"2021-04-27T17:45:49","date_gmt":"2021-04-27T17:45:49","guid":{"rendered":"https:\/\/precoinnews.com\/?p=122808"},"modified":"2021-04-27T17:45:49","modified_gmt":"2021-04-27T17:45:49","slug":"european-shares-end-lower-as-ubs-unveils-archegos-hit-travel-stocks-soar","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/european-shares-end-lower-as-ubs-unveils-archegos-hit-travel-stocks-soar\/","title":{"rendered":"European shares end lower as UBS unveils Archegos hit, travel stocks soar"},"content":{"rendered":"
(Reuters) -European stocks ended a shade lower on Tuesday as optimism over strong British earnings was offset by UBS disclosing a hit from dealing with U.S. investment firm Archegos, while travel stocks hit record highs on hopes of a post-COVID rebound.<\/p> The pan-European STOXX 600 index slipped 0.1%, with investors holding off big bets ahead of the U.S. Federal Reserve\u2019s policy decision on Wednesday. The bank is widely expected to maintain easy monetary policy.<\/p>\n Oil major BP rose 0.4% after its first-quarter profit soared and it planned share buybacks, while Asia-focused lender HSBC gained 4.2% after it reported an upbeat quarterly profit.<\/p>\n Meanwhile, UBS fell 2.0% to a two-month closing low as it took an unexpected $774 million hit from Archegos, overshadowing a forecast-beating 14% rise in quarterly net profit.<\/p>\n Still, markets were caught in a tight trading range as investors watched for any clues on the timing of the Fed\u2019s eventual policy tightening, which the bank has said will depend on employment and inflation levels.<\/p>\n \u201cUltimately, the exact timing of tapering will be a judgement call by the Fed,\u201d Unicredit analysts said.<\/p>\n \u201cThey will likely want to see a sequence of better data on jobs and economic activity that substantially reduces the \u2018gaps\u2019 to pre-crisis levels, reinforced by a sustainable improvement in the health situation.\u201d<\/p>\n Global stocks have hit record highs recently on optimism about a economic recovery as the pace of vaccination picked up across developed economies.<\/p>\n European travel stocks shared this sentiment, surging 3.0% to close at a record high. Bank stocks also ended higher on upbeat earnings, as well as support from increasing euro zone bond yields. [GVD\/EUR]<\/p>\n About a quarter of STOXX companies are set to publish earnings this week. Among the 17% that have reported so far, 65% topped profit estimates, according to Refinitiv IBES data.<\/p>\n Sweden\u2019s Evolution Gaming Group jumped 14.5% to the top of the STOXX 600, as it reported a 150% jump in quarterly core earnings as the COVID-19 pandemic boosted demand for online casino games.<\/p>\n Danish freight forwarder DSV Panalpina surged 6.8% after it agreed to buy the logistics division of Kuwait\u2019s Agility Public Warehousing Co in a deal worth $4.1 billion.<\/p>\n French diagnostics group Biomerieux fell 6.9% to the bottom of the STOXX 600 after it halved its sales outlook for the first half of the year as the easing pandemic looked to cut demand.<\/p>\n