European markets edge higher as bond yields retreat

European stocks moved modestly higher on Tuesday, drawing momentum from a rise in U.S. stock futures as global bond yields pulled back.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE	VOLUME
.FTSE	FTSE 100	FTSE	6780.96	61.83	0.92	300760087
.GDAXI	DAX	DAX	14441.70	60.79	0.42	34589123
.FCHI	CAC 40 Index	CAC	5926.40	23.41	0.40	29151314

The pan-European Stoxx 600 gained 0.4% during morning deals after a negative start to trading. Utilities climbed 2% while banking stocks dropped 1%.

U.S. stock futures are pointing to a strong open on Wall Street later in the day, with equity markets bolstered by a retreat in bond yields. The benchmark U.S. 10-year Treasury yield pulled back from 1.6% to hover at around 1.5385% by mid-morning in Europe.

Stocks are looking to build on Monday’s rally, fueled in part by the Senate’s passing of a $1.9 trillion economic relief and stimulus bill on Saturday, which is set to include another round of stimulus checks. President Joe Biden is expected to sign it before key unemployment programs expire on Sunday.

In the U.S. session on Monday, banks, airlines, cruise lines and retailers all rose in hopes of a sharp economic rebound. Meanwhile, in Europe, the pan-European Stoxx 600 closed up 2.2%, with banks adding 3.7% to lead gains as almost all sectors and major indexes advanced.

Shares in Asia-Pacific were mixed on Tuesday with mainland Chinese shares retreating sharply while Japan's Nikkei 225 closed 0.99% higher.

Data releases include revised fourth-quarter euro zone growth figures and German export and import data for January.

Earnings in focus

In Europe Tuesday, earnings came from Leonardo, Deutsche Post, Continental, Standard Life Aberdeen, ITV and Domino's Pizza Group.

British investment manager M&G added 5.3% after stronger-than-expected earnings. Leonardo's full-year results pushed its shares 2.2% higher and Deutsche Post gained 2.3%.

Danish jeweler Pandora saw its shares climb 6.4% after reporting a rise in year-on-year organic growth in February.

Continental and IWG slid 5.6% and 4.1% respectively following their results, while at the bottom of the European blue chip index, Dutch coffee and tea group JDE Peet's tfell 6.2% after lowering its forecasts.