European shares close to all time highs
European shares hovered just below all-time highs on Tuesday as investors awaited data that is expected to show a pickup in U.S. inflation on the back of a swift global economic recovery.
The pan-European STOXX 600 rose 0.3% and the export-heavy German stock index gained 0.4%, as data also showed China’s exports grew at a robust pace in March and import growth surged to its highest in four years. European retail, travel-related and auto stocks were among the biggest gainers by 1000 GMT.
The benchmark STOXX 600 has surged to record highs this month after coming under pressure in March from rising bond yields, as central banks globally maintained an accommodative stance on monetary policy despite fears of a jump in inflation.
Data due at 1230 GMT is likely to show the U.S. consumer price index edged up 0.5% in March following a 0.4% gain in the previous month. The European STOXX 600 has also lagged a recovery in its U.S. counterpart due to a slow vaccination roll-out and a new wave of coronavirus infections on the continent.
Bank of France governor and European Central Bank policymaker Francois Villeroy de Gal-hau said on Tuesday that France could return to pre-COVID-19 normal economic growth levels by the middle of 2022. The French bourse was up 0.4% after hitting its highest in a decade last week.
European earnings will kick into higher gear later in April and analysts expect a 47.4% jump in earnings for STOXX 600 companies, according to Refinitiv IBES data. Much of the support is likely to come from consumer cyclicals and industrial firms.
Britain’s biggest sportswear retailer JD Sports jumped 3% as it forecast profit growth for this year and announced plans to ramp up warehouse capacity to fulfil online orders and minimise disruptions from Brexit. Swedish IT solutions provider Dustin rose 3.5% after it said it would buy Centralpoint, a seller of hardware and software in the Benelux region, for 425 million euros.
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.