Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2021 07 09T162404Z 1 LYNXNPEH680ZI RTROPTP 4 EUROPE STOCKS - Business Express
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 9, 2021. REUTERS/Staff

European stocks rise on bargain-hunting, erase weekly losses

(Reuters) -European stocks jumped more than 1% on Friday, posting their best session in two months and erasing all of this week’s losses, as investors sought bargains after one of the worst sell-offs this year on global economic recovery worries.

The pan-European STOXX 600 index gained 1.3%, with sectors that took a hit earlier this week such as automakers and miners surging 4% and 3.4%, respectively. The mining sector marked its best session in two months.

French stocks rose by the most in four months, advancing 2.1% and leading gains among major European bourses.

Banks were up 2.4%, but were the hardest hit this week as government bond yields dropped. [GVD/EUR]

A fresh surge in COVID-19 cases and underwhelming U.S. and Chinese economic data raised concerns about the strength of the recovery, boosting bonds and sending the benchmark STOXX 600 1.1% lower on the week until Friday’s gains negated those losses.

But with France saying the highly contagious Delta variant of COVID-19 will probably account for most new coronavirus cases in the country from this weekend, and Spain’s tourism hotspots asking the government to bring back curfews, the path out of a pandemic-induced economic slump still looks challenging.

“This sort of angst is nothing new for markets. However, the slide in yields is telling us that the recovery is either in trouble, or merely being delayed,” CMC Markets’ Michael Hewson said in a note.

“Much is likely to depend on the vaccine rollout plans, and the speed with which it can be rolled out in the countries where cases are rising sharply.”

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

UK airlines such as British Airways-owner IAG, easyJet and Ryanair rose between 0.5% and 1.9%, as Britain planned to scrap quarantine for fully-vaccinated arrivals from other countries in the coming weeks.

Data released earlier showed UK’s post-lockdown economic rebound slowed sharply in May despite an easing of COVID-related restrictions.

French planemaker Airbus gained 3.4% after it reported a 52% jump in deliveries in the first half of the year.

British luxury goods group Burberry rose 3.8% after Goldman Sachs upgraded the stock to “buy”, while Italian rival Salvatore Ferragamo slipped 0.7% after the U.S. bank downgraded it to “sell”.

Investors will now turn their focus to the earnings season, which kicks off in earnest next week. The bulk of the European companies are expected to report later this month, with analysts forecasting a near-109% surge in second-quarter profit for STOXX 600 companies, according to Refinitiv IBES data.

(Reporting by Sruthi Shankar and Susan Mathew in Bengaluru; editing by Uttaresh.V, Aditya Soni)

Recent Post: