European markets gain on recovery hopes; Credit Suisse cuts dividend

  • 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.

European markets advanced 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 gained 0.6% in early trade, with basic resources adding 2% to lead gains as all sectors except telecoms entered positive territory.

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

Stateside, futures are indicating a negative open on Wall Street 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 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).

On the data front, investors will have an eye on February's euro zone unemployment rate, set for publication at 10 a.m. London time. Meanwhile the IMF releases its World Economic Outlook and Global Financial Stability Report on Tuesday.

In terms of individual share price movement, cruise operator Carnival climbed 5.7% to lead the Stoxx 600 in early trade, while French infrastructure firm Accion slid 5.2%.

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