European Stocks Close On Strong Note

European stocks closed on a strong note, rebounding from the previous session's losses, as some encouraging earnings updates and a report from Moderna Inc. saying the laboratory test of a booster dose of its Covid-19 vaccine had shown itself to be effective against the Omicron variant.

Technology stocks moved higher, buoyed by stronger than expected quarterly results from U.S. firm Micron Technology Inc. Higher commodity prices helped lift energy companies and miners. Travel stocks gained amid slightly fading concerns about the effectiveness of vaccines against Omicron.

The pan European Stoxx 600 climbed 1.42%. The U.K.'s FTSE 100 and France's CAC both gained 1.38%, Germany's DAX surged up 1.36%, and Switzerland's SMI ended 0.74% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Portugal, Russia, Spain and Sweden closed with sharp to moderate gains.

Poland ended marginally down, while Turkey closed sharply lower.

In the UK market, IAG soared nearly 7%. Informa, Melrose Industries, Associated British Foods, JD Sports Fashion, Compass Group, Rolls-Royce Holdings, Taylor Wimpey, Whitbread, Barclays, ABRDN, Evraz, Barratt Developments and Smith & Nephew gained 3 to 5%.

Schrodders gained more than 3% after the company said it has reached an agreement to acquire a 75% shareholding in Greencoat Capital Holdings Limited for an initial consideration of 358 million pounds.

Shares of Empresaria Group soared 12.3%. The specialist staffing group said it now expects fiscal 2021 profit before tax to be materially ahead of current market forecasts.

Ocado Group, Dechra Pharmaceuticals and Auto Rider Group shed 2.7%, 2.4% and 1.7%, respectively.

In France, Technip surged up more than 5.5%. WorldLine, Airbus, Vivendi, Air France-KLM, BNP Paribas, Accor, Unibail Rodamco, Renault, Faurecia, ArcelorMittal, Michelin, Societe Generale, Credit Agricole, Sodexo, Saint Gobain, Thales and Vinci gained 2 to 5%.

Sanofi gained nearly 1% after the company announced that it has entered into an agreement to acquire Amunix Pharmaceuticals, Inc., an immuno-oncology company.

In the German market, MTU Aero Engines gained more than 4%. Deutsche Boerse, Fresenius Medical Care, Deutsche Bank, BMW, Daimler, E.ON, RWE, HeidelbergCement, Infineon Technologies and Fresenius gained 1.5 to 3.2%.

In economic releases, survey results from the market research group GfK showed earlier today that German consumer confidence is set to fall sharply in January, largely due to the restrictions imposed amid the fourth wave of the pandemic and rising inflation.

The forward-looking consumer sentiment fell to -6.8 in January from -1.8 in December. The expected reading was -2.7.

Eurozone's consumer confidence deteriorated for a third straight month to its weakest level since March, preliminary results of the monthly survey by the European Commission showed Tuesday.

The flash consumer confidence indicator fell to -8.3 from -6.8 in November. Economists were looking for a score of -8.0.

Elsewhere, the U.K. budget deficit reached its second-highest level for the month of November since the records began in 1993, the Office for National Statistics said.

Public sector net borrowing totaled GBP 17.4 billion in November, down by GBP 4.9 billion from the same period last year. This was also bigger than the economists' forecast of GBP 16 billion.

In the financial year-to-November, the budget deficit decreased by GBP 115.8 billion from the last year to GBP 136.0 billion.

UK retail sales growth eased more-than-expected in December and high street sales are forecast to be poor next month, the monthly Distributive Trades Survey results from the Confederation of British Industry showed on Tuesday.

The retail sales balance fell to +8% in December from +39% in November. The balance was forecast to drop to 13%.

Data from the Federal Customs Administration showed Switzerland's exports grew by a real 1.6% month-on-month in November, after a 2.1% decline in October.

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