European markets closed modestly higher on Tuesday as investors looked ahead to some crucial economic data, including U.S. non-farm payrolls jobs data, and reacted positively to data showing a jump in eurozone economic sentiment in the month of June.
Worries about a surge in the delta variant of Covid-19 and fresh curbs on travel in several countries, including Spain, Portugal and Germany, raised concerns about the pace of economic recovery and limited markets’ upside.
The pan European Stoxx 600 gained 0.31%. The U.K.’s FTSE 100 climbed 0.21% and Germany’s DAX surged up 0.88%, while France’s CAC 40 and Switzerland’s SMI edged up 0.14% and 0.16%, respectively.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands and Sweden ended higher.
Greece, Poland and Russia closed weak, while Norway, Portugal, Spain and Turkey closed flat.
In the UK market, Just Eat Takeaway climbed nearly 4%. Johnson Matthey, Evraz, Ocado Group, Pershing Square Holdings, Ferguson, Smurfit Kappa Group, B&M, ICP, Persimmon, Kingfisher, Mondi and Glencore gained 1.3 to 2.5%.
Polymeta International declined 3.25%. BT Group, Rolls-Royce Holdings, Fresnillo, Standard Life, United Utilities, IAG and Coca-Cola lost 1 to 2%.
In the French market, ArcelorMittal gained nearly 4%. Saint Gobain, Michelin, Thales, Valeo, Credit Agricole, Renault, Societe Generale, Veolia, LVMH and Faurecia gained 1 to 2.3%.
On the other hand, Unibail Rodamco, Sodexo, Carrefour and Safran ended notably lower.
In Germany, Infineon Technologies rallied more than 4%. Adidas, BASF and Puma gained 2 to 3%. Thyssenkrupp, Deutsche Post, Deutsche Bank, SAP, Linde and Merck also closed with strong gains.
In economic news, a report from the European Commission said that its economic sentiment indicator for eurozone increased sharply in June to hit a 21-year high, driven mainly by a strong increase in confidence in the services sector.
The economic confidence index rose more-than-expected to 117.9 in June from 114.5 in the previous month. The expected level was 116.5.
The industrial confidence index increased for the seventh month in a row to a new all-time high of 12.7 in June from 11.5 a month ago. The reading was also above economists’ forecast of 12.3.
Services confidence posted its fifth straight month of improvement in June. At 17.9, the corresponding index hit the highest since August 2007, up from 11.3 in the previous month.
Likewise, the consumer sentiment indicator improved to -3.3 from -5.1 in May. The reading matched the flash estimate. This was the fifth consecutive increase in confidence.
French consumer sentiment strengthened to a 15-month high in June, monthly survey data from the statistical office Insee showed. The consumer confidence index rose to 102 in June from 98 in May. This was the highest level since March 2020 and was also above economists’ forecast of 100.
In the UK, house prices grew at the fastest pace in more than six years in June largely due to the low base of comparison, data from the Nationwide Building Society showed. House prices grew 13.4% on a yearly basis in June, the biggest outturn since November, 2004. Economists had forecast prices to climb 13.7% after rising 10.9% in May.
Market Analysis
European Markets Close Higher
2021-06-29 18:05:50
