Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks rise on upbeat forecasts from Volkswagen, Zalando

Stock MarketsMar 16, 2021 05:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar and Devik Jain

(Reuters) - European stocks rose on Tuesday as German carmaker Volkswagen (DE:VOWG_p) and online fashion retailer Zalando jumped following upbeat earnings forecasts, while investors awaited the U.S. Federal Reserve's views on a recent pick-up in inflation.

The pan-European STOXX 600 index rose 0.5%, inching closer to a record peak set last year and tracking an overnight rally on Wall Street on optimism about an eventual economic recovery from the pandemic lows.

Volkswagen AG (OTC:VWAGY) jumped 4.9% after the world's second-largest carmaker said it was confident that cost cuts will help improve profit margins in the coming years, boosting European automakers.

Zalando rose 4.1% after it forecast 2021 revenue growth above market expectations following a strong start to the year. Its shares touched a three-week high and lifted the wider retail index.

A gauge of volatility in European stock markets slipped to its lowest level since February 2020.

Investors are focused on the Fed's two-day policy meeting, which will end on Wednesday amid concerns that a potential spike in inflation as economies recover could prompt the central bank to tighten monetary policy sooner than expected.

"The ideal situation for the markets would be the central bank saying, "Yes, we're concerned about inflation and we're going to step in and prevent inflation going too high," said Connor Campbell, financial analyst at spreadbetters SpreadEx.

"Though the issue is going to be that the Fed is completely comfortable with inflation hitting 2% or higher."

Official data showed French final inflation rose largely in-line with estimates in February. Meanwhile, numbers from the ZEW economic research institute, due at 10 am GMT, are expected to show German investor confidence likely rose to 74.0 points in March versus 71.2 points a month earlier.

While optimism about an economic recovery have pushed markets to near record highs, concerns remain about the pace of COVID-19 vaccination in Europe, with Sweden becoming the latest country to pause AstraZeneca (NASDAQ:AZN)'s vaccine after several countries reported possible serious side-effects.

Deutsche Bank (DE:DBKGn) slashed 2021 economic growth forecasts for the euro area by a percentage point, citing spillover of the ongoing pandemic-linked activity curbs, but raised predictions for Britain, the United States and India.

French telecoms operator Iliad SA jumped almost 5%after saying it aimed to turn a core profit for its Italian business in the second half of this year.

German biotech firm Morphosys slumped 8.9​​​​​​​​% to the bottom of STOXX 600 after forecasting a fall in 2021 revenue.

European stocks rise on upbeat forecasts from Volkswagen, Zalando
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email