European stocks bounce as earnings, data spur recovery hopes

News Image

MG News | May 05, 2021 at 02:04 PM GMT+05:00

0:00

May 5, 2021: European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets.

The pan-European STOXX 600 index rose 1.3%, wiping out almost all of its 1.4% loss on Tuesday, with the German DAX jumping 1.3% and UK's FTSE 100 gaining 1.1%.

Big UK miners, including Rio Tinto, BHP Group and Anglo American, rose about 3% each as copper prices rose past a key psychological level of $10,000 a tonne, buoyed by optimism about a speedy recovery in the global economy.

Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth, a survey showed.

European tech stocks rose 1.8% after a 3.7% plunge in the previous session.

Wall Street's tech-heavy Nasdaq tumbled on Tuesday as investors pulled out of fast-growing companies such as Apple and Amazon amid concerns over rising interest rate and uncertainty over an upcoming jobs report.

"Yesterday's sell-off in equities is a reminder that valuations in markets are tight," Unicredit analysts said in a note. They, however, pointed out that earnings season continued to be supportive of risk appetite.

German logistics company Deutsche Post rose 2.6% on raising its operating profit forecast for 2021, while Danish shipping company Maersk was up 3.4% after it said it was expecting an "exceptionally strong" performance in the first quarter to continue for the rest of the year.

European earnings are now expected to surge 83.1% in the first quarter, according to Refinitiv IBES data, up from last week's forecast of 71.3% growth.

Stellantis rallied 2.7% after the carmaker reported better-than-expected quarterly revenue but warned that a global shortage of semiconductors would affect production this quarter more heavily.

Auto stocks lagged their cyclical counterparts, rising only 0.3%, as Daimler slipped after Japan's Nissan Motor said it was selling its roughly 1.5% stake in the German carmaker.

German fashion house Hugo Boss rose 4.2% as it saw first-quarter sales almost double in mainland China, and its casual business returned to growth.

Delivery Hero fell 3.8% as former owners of Woowa Brothers sold shares worth about 1.25 billion euros ($1.5 billion) in the online takeaway food company.

Reuters

Related News

Name Price/Vol %Chg/NChg
KSE100 138,597.36
256.32M
-0.05%
-68.14
ALLSHR 85,286.16
608.38M
-0.48%
-413.35
KSE30 42,340.81
77.13M
-0.03%
-12.33
KMI30 193,554.51
76.19M
-0.83%
-1627.52
KMIALLSHR 55,946.05
305.11M
-0.79%
-443.10
BKTi 38,197.97
16.53M
-0.59%
-225.01
OGTi 27,457.35
6.73M
-0.94%
-260.91
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 117,670.00 121,165.00
117,035.00
-1620.00
-1.36%
BRENT CRUDE 69.23 70.77
69.14
-0.29
-0.42%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.03 67.54
65.93
-0.20
-0.30%
SUGAR #11 WORLD 16.79 17.02
16.71
0.05
0.30%

Chart of the Day


Latest News
July 19, 2025 at 04:28 PM GMT+05:00

4.7m families get BISP aid in Punjab


July 19, 2025 at 03:00 PM GMT+05:00

Key Pakistan Market Stats and Economic Indicators


July 19, 2025 at 02:49 PM GMT+05:00

RDA attracts $182m in June


July 19, 2025 at 02:49 PM GMT+05:00

M2 falls by Rs455bn in a week



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg