European markets edge lower after batch of downbeat company earnings

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Investors keep eye on geopolitical tensions ahead of trip by US president Joe Biden to Israel

European stocks edged lower on Tuesday as a slew of downbeat earnings and higher government bond yields outweighed gains in energy shares and a slight easing of concerns about risks stemming from the Middle East conflict.

Bank of Ireland dropped 0.8 per cent to €9.48, with AIB bucking the negative trend to edge up 0.3 per cent to €4.38.The blue-chip FTSE 100 rose 0.6 per cent figures showing a weakening labour market lifted investor sentiment on the basis that slower wage growth will reduce inflation pressure. The mid-cap FTSE 250 index added 1 per cent.

The rate-sensitive home builders’ index added 2.3 per cent and led sectoral gains, while Bellway reversed early losses and gained 3.3 per cent even as the home builder forecast about a one-third slump in annual output. Bank of America gained 3.1 per cent, boosting the S&P 500 as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.

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Markets calm as investors eye Middle East conflict and upcoming earnings reportsAs a spate of third-quarter corporate results are due this week. strategists say the outlook for earnings is weakening and could remain subdued
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