European Shares Advance On Optimism Over Economic Recovery

stockmarkets jan11 15jun21 lt

European stocks rose on Tuesday amid hopes for a swift and lasting economic recovery from the coronavirus pandemic.

Investors await the outcome of a two-day policy meeting of the Federal Reserve starting later in the day for indications of the central bank's view on recent inflation rises.

The pan-European STOXX 600 rose 0.3 percent to 459.76, extending gains for an eighth straight session and marking its longest winning streak in more than two years.

Lufthansa Group shares dropped 1 percent. The airline said it aims to achieve an Adjusted EBIT margin of at least 8 percent and an Adjusted ROCE, excluding cash of at least 10 percent in 2024.

Equinor fell more than 2 percent. The company said it is seeking to increase the share of investment it dedicates to renewable energy and so-called low-carbon solutions.

Retailer Hennes & Mauritz AB fell almost 2 percent. The company reported that its second-quarter net sales increased 62 percent to 46.51 billion Swedish kronor from last year's 28.66 billion kronor.

Primark owner Associated British Foods rallied 2.6 percent after a positive first-quarter update from fast fashion retailer Boohoo.

Equipment rental group Ashtead advanced 1.4 percent after reporting a doubling in profits in the fourth quarter of the year.

Subprime lender Non-Standard Finance plummeted 10 percent after announcing a share sale.

In economic releases, the euro area trade surplus narrowed to EUR 9.4 billion in April from EUR 18.3 billion in March as exports declined amid rising reports, Eurostat reported. This was the smallest surplus since May 2020.

Germany's harmonized inflation accelerated for a third month in a row to its highest level in nearly three years and remained above the European Central Bank's target of 'below, but close to 2 percent' in May, final data from Destatis confirmed.

The U.K. unemployment rate dropped 0.3 percentage points quarterly to 4.7 percent in three months to April as expected, official data showed earlier today.

The employment rate rose 0.2 percentage points to 75.2 percent as the economy began to reopen.

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