European markets end on a high note as stocks rally to bargain hunt

(RTTNews) – European stocks closed on a high on Tuesday, rebounding intelligently after suffering heavy losses in the previous session amid concerns over debt problems at Chinese real estate company Evergrande.

Investors ignored concerns about Evergrande’s woes and went on a bargain hunt and anticipated monetary policy announcements from the Federal Reserve and Bank of England.

While the Fed is expected to announce its policy on Wednesday, the ECB is expected to announce its policy on Thursday.

The Fed is expected to leave its monetary policy unchanged, but may revise the outlook for its asset purchase program. The minutes of the last Fed meeting indicated that the central bank was ready to start reducing asset purchases by the end of the year.

With recent disappointing economic data suggesting that the Fed may push back its plans, traders are likely to pay close attention to the wording of the post-meeting statement.

The markets reacted positively to the OECD economic outlook report indicating that the euro area economy is expected to grow by 5.3% this year. The previous projection predicted an expansion of 4.3%.

The pan-European Stoxx 600 rose 1%. The UK FTSE 100 gained 1.12%. Germany’s DAX climbed 1.43% and France’s CAC 40 rose 1.5%, while Switzerland’s SMI rose 0.19%.

Among other European markets, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal and Spain finished in head.

Russia and Sweden advanced slightly, while Iceland and Turkey finished weak.

In the UK market, Entain climbed more than 18% on reports DraftKings had made a $ 20 billion takeover offer for the UK sports betting and online gambling company. Entain’s board of directors confirmed in a file with the London Stock Exchange that it had received a proposal from DraftKings.

Pershing Square Holdings climbed 5%. Royal Dutch Shell, Flutter Entertainment, Rolls-Royce Holdings, Segro, IAG, Prudential, Ocado Group, IHG, Scottish Mortgage, Admiral Group, Sainsbury (J) and 3I Group gained 2-4%.

Kingfisher fell almost 5% despite news of a first half profit increase. Compass Group, Antofagasta and Lloyds Banking Group also ended sharply lower.

In the German market, HelloFesh gained around 4%. Merck, Siemens Healthineers, Siemens, Fresenius, Porsche Automobil, Vonovia, Allianz and SAP gained 2-3%. Infineon Technologies, Symrise, MTU Aero Engines, Munich RE and Henkel also rebounded strongly.

In France, Saint Gobain, Teleperformance, LOreal, LVMH, Pernod Ricard, Capgemini, Air Liquide, Dassault Systèmes, Hermes International, Air France-KLM, Essilor, Vinci and STMicroElectronics gained 1.5 to 3%.

Atos, Faurecia, ArcelorMittal, Technip, Sodexo and Veolia ended down 1 to 2.3%.

Shares of Universal Music Group soared this morning, as owner Vivendi separated the record company in the highest European listing of the year.

In economic news, the UK budget posted its second-highest deficit on record for August, according to data released by the Office for National Statistics.

Net borrowing by the public sector, excluding public sector banks, stood at £ 20.5 billion in August 2021. It was the second highest borrowing in August since monthly records began. in 1993. Nonetheless, it was £ 5.5 billion less than in August 2020.

UK manufacturing orders saw the strongest growth in September, with the backlog reaching 22% in the month from 18% in August, data from a survey released by the Confederation of British Industry showed on Tuesday. .

This is the strongest growth in orders since April 1977.

At the same time, the balance of the export order book grew to -2%, the highest since March 2019, against -16% in August.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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