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European Shares Hover Near Three-month High

stockmarkets dec12 02jun20 lt

European stocks rose on Tuesday to hit their highest level in nearly three months as optimism around a post-coronavirus economic recovery helped offset jitters over increasingly violent social unrest in the U.S. and rising U.S.-China tensions.

The pan European Stoxx 600 rose about 1.4 percent to 359.05, the highest level since March 9.

The German DAX jumped as much as 3.2 percent to 11,953 as traders returned to their desks after a long holiday weekend.

France' s CAC 40 index gained 1.7 percent and the U.K.'s FTSE 100 was up a little over 1 percent.

Norway's Seadrill plunged 9 percent after the company announced plans to delist from the New York Stock Exchange.

Tesco shares fell 2 percent. Chief Financial Officer Alan Stewart plans to step down next year, extending a management overhaul at the U.K.'s largest supermarket.

Hospital operator Mediclinic advanced 1.5 percent despite posting a net loss of 315 million pounds ($394 million) for fiscal year 2019/2020.

Carrefour was down about 1 percent. The supermarket group has agreed to buy Wellcome Taiwan from Dairy Farm International Holdings Ltd., making it the number two player in Taiwan's convenience stores market.

German automobile stocks were moving higher after the ministry of economics proposed a $6.2 billion stimulus package to boost car sales.

BMW shares soared 6.2 percent, Daimler surged nearly 10 percent and Volkswagen added 6 percent. French automaker Renault surged 4.2 percent and Peugeot advanced 4.4 percent.

German flag carrier Lufthansa rallied 5.3 percent. The company's supervisory board approved a 9 billion-euro ($10 billion) government bailout for the airline.

In economic releases, U.K. house prices fell 1.7 percent month-on-month in May, in contrast to a 0.9 percent rise in April as the impact of the coronavirus pandemic filtered through the property market, data from the Nationwide Building Society showed. This was the biggest fall since February 2009. Economists had forecast a fall of 1 percent.

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