European stocks near two-week high
European shares rose to a near two-week high on Tuesday, powered by cyclical stocks after latest economic data signalled that business activity in the continent was rebounding faster than expected from a coronavirus-driven slump.
The pan-European STOXX 600 index rose 1.4% as economically sensitive sectors such as banks, automakers and insurers jumped between 2% and 3.5%. Euro zone stocks rose 1.8% after IHS Markit’s Purchasing Managers’ Index showed a historic coronavirus-induced downturn in the bloc eased again in June as businesses reopened after weeks-long lockdowns.
Germany’s DAX jumped 2.3%, France’s CAC 40 rose 1.6% and UK’s FTSE 100 rose 0.9% after better-thanexpected readings.
After a more than 35% recovery from March lows, the STOXX 600 has traded sideways in the recent weeks as investors remain cautious about a second wave of coronavirus infections that could stall an economic rebound even as central banks and governments inject cash into the ailing economies.
Investors were also relieved as White House trade adviser Peter Navarro walked back from his earlier remarks that the Phase One trade deal with China was “over” and on U.S. President Donald Trump’s confirmation in a tweet the trade deal was fully intact.
Bayer AG gained 2.2% after a U. S. federal appeals court blocked California from requiring the company to label its glyphosate-based weed killer, Roundup, with a cancer warning. German metals trader Kloeckner & Co jumped 20% after it provided positive earnings outlook for the second quarter. Payments company Wirecard mired in an accounting scandal, bounced 16.3% after shedding more than 140% in the past three sessions. UK-listed drugmaker Hikma Pharmaceuticals fell 7% after a major shareholder sold most of its nearly 1 billion pound stake.
Asian equity markets bounced on Tuesday after U.S. President Donald Trump said the U.S.-China trade pact was “fully intact”, clarifying earlier confusing statements from the White House over the fate of the deal.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.