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European Shares Extend Gains For Third Day

stockmarkets jan02 11aug20 lt

European stocks rose for a third consecutive session on Tuesday, with signs of economic rebound and hopes for a U.S. stimulus package helping underpin investor sentiment.

The pan European Stoxx 600 rallied 2 percent to 372.13 after rising 0.3 percent on Monday. The German DAX surged 2.7 percent, France's CAC 40 index jumped 2.8 percent and the U.K.'s FTSE 100 was up 2.3 percent.

BP Plc shares jumped 4 percent and Royal Dutch Shell rallied 4.3 percent as oil prices rose on signs that the surge in coronavirus cases in the southern U.S. is slowing. Miners Anglo American, Antofagasta and Glencore rose 2-3 percent.

Travel-related stocks were also moving higher. EasyJet surged 6.3 percent and International Consolidated Airlines Group soared 7.4 percent.

HSBC Holdings gained 4.3 percent as it announced the anticipated launch of nine separate offers to purchase for cash any and all of the outstanding series of notes.

Builder Bellway lost about 1 percent. The company said it sold around 14 percent fewer homes each week of July.

Automaker Renault surged 4.6 percent and Peugeot rallied 4.5 percent after data showed China's auto sales rose by an annual 16.4 percent in July in a sign of sustained recovery for the industry's biggest global market. German automakers BMW, Daimler and Volkswagen climbed 4-5 percent.

Vivendi rallied 3.4 percent. The mass media conglomerate and Amber Capital have agreed to sign a pact regarding Lagardère.

The companies will initiate steps in this framework with Lagardère to each seek a minority Supervisory Board representation of three members for Amber Capital and one member for Vivendi.

Energy company Uniper declined 1.5 percent. The company warned it may have to impair a loan provided to the planned Nord Stream 2 gas pipeline if the project collapses in the face of U.S. sanctions.

Copper producer Aurubis added 1.4 percent after confirming its full-year earnings outlook.

Pharmaceutical and life sciences company Bayer climbed 2.4 percent after it agreed to acquire KaNDy Therapeutics Ltd., a U.K.-based private clinical-stage biotech that was founded in 2017 as a spin-off from NeRRe Therapeutics Ltd.

Meal-kit delivery firm HelloFresh rose 1.8 percent after raising its annual guidance.

Zalando, an e-commerce company, gained more than 3 percent after its quarterly net income jumped to 123 million euros from 46 million euros in the prior-year period.

In economic news, German economic confidence improved notably in August, survey data from the ZEW - Leibniz Centre for European Economic Research showed.

The ZEW Indicator of Economic Sentiment increased unexpectedly to 71.5 in August from 59.3 in July. The score was forecast to fall to 58.0.

Around 730,000 people have lost their jobs in the United Kingdom since the Covid-19 lockdown began in March, the biggest drop in quarterly employment since the 2009 financial crisis, official data showed.

Separately, monthly data from the British Retail Consortium revealed that U.K. like-for-like retail sales increased strongly in July as lockdown measures were eased and demand gradually began to return in some places.

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