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European Shares Advance On Recovery Hopes

marketopen 011519 26may20 lt

European stocks rose on Tuesday to hover near a 11-week high as more countries prepare easing restrictions on social, commercial and travel activities.

The lifting of the state of emergency in Japan and growing optimism about a potential coronavirus vaccine also bolstered sentiment.

U.S. biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine and that it expects initial results on safety and immune responses in July.

On the data front, survey results from market research group GfK showed that German consumer confidence is set to recover marginally in June.

The forward-looking consumer sentiment index rose to -18.9 in June from -23.1 in May. The score was expected to improve to -18.3.

The pan European Stoxx 600 climbed 1.1 percent to 348.99 after gaining 1.5 percent on Monday.

The German DAX rose 0.8 percent, France's CAC 40 index gained 1.5 percent and the U.K.'s FTSE 100 was up 1.4 percent.

Aryzta surged 5.6 percent. The Swiss-Irish baked goods group said that trading conditions have shown some signs of early recovery in May with three consecutive weeks of improvement in revenue.

Lufthansa shares soared 5.5 percent to extend gains from the previous session after the German government agreed a 9 billion-euro ($9.8 billion) bailout for the airline.

Shares of easyJet and IAG soared as much as 20 percent in London amid easing travel bans across the world.

Automotive parts supplier HELLA GmbH & Co. KGaA surged 8.5 percent. The company said it will recognize non-cash impairments of about 500 million euros in the fourth quarter.

Payments company Wirecard AG declined 1.8 percent after postponing the publication of its 2019 annual results for the third time this year.

Renault jumped 5 percent and Peugeot added 5.3 percent after French President Emmanuel Macron said that support for the French car sector will be "massively amplified".

Shopping centre operator Klepierre SA climbed nearly 11 percent. The company announced that the vast majority of its shopping centers have reopened in Europe.

Aston Martin jumped 37 percent as the struggling luxury carmaker announced the appointment of Tobias Moers, CEO of Mercedes-AMG, as its new chief executive officer.

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