Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Strong data, earnings optimism lift European stocks

Published 05/03/2021, 03:28 AM
Updated 05/03/2021, 10:45 AM
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) -European stocks drifted higher on Monday after strong euro zone factory activity and German retail sales data highlighted a quick rebound in economic growth, with a largely buoyant earnings season adding to the upbeat mood.

Euro zone stocks index that includes markets in continental Europe rose 0.6%, while the German DAX was up 0.8% and France's CAC 40 gained 0.6%.

UK markets were closed for May Bank holiday, keeping trading volumes light.

A survey showed euro zone factory activity growth reached a record high last month, while German retail sales posted their biggest year-on-year increase in March since the start of the COVID-19 pandemic.

"COVID-19 infections are stabilizing in Germany and the Netherlands, are on a downtrend in France and Italy, and appear to be under control in Spain," analysts at BCA Research wrote in a note.

"Meanwhile, vaccinations are gathering pace across the euro area. This will allow authorities to ease restrictions and economic activity to accelerate."

Europe's benchmark STOXX 600 ended April with a 1.8% rise, and just below its all-time high as a pick-up in European vaccination drive and solid earnings reports boosted hopes of a strong economic recovery.

Nearly half of the STOXX 600 companies have reported so far, and 75% have topped profit estimates, as per Refinitiv IBES data. Normally, 51% beat earnings expectations.

German health technology company Siemens Healthineers rose 1.7% after it raised its full-year sales and profit forecast.

German airlines Lufthansa rose 2.1% following plans to offer flights to more than 100 holiday destination, Chief Executive Carsten Spohr told a German newspaper.

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

Wind turbine maker Siemens Gamesa fell 4.1% after it warned it could earn less this year than previously expected.

Dutch telecommunications company KPN NV fell 3.9% after it rejected unsolicited takeover offers from a private equity consortium comprising EQT (NYSE:EQT) AB and Stonepeak Infrastructure Partners and another from KKR.

Latest comments

Strange world.
So markets have now reversed due to strong data & earnings optimism lol.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.