European Stocks In Positive Territory On Upbeat Economic Data

European stocks are up in positive territory Thursday afternoon as investors continue to bet on strong economic rebound, although the surge in the delta variant of the coronavirus cases raise some uncertainty about the pace of recovery.

Investors are currently digesting the latest batch of upeat economic data from the euro area and are also awaiting the crucial monthly jobs data from the U.S., due on Friday.

The pan European Stoxx 600 is up 0.31%. The U.K.’s FTSE 100 is climbing 0.85%, Germany’s DAX is gaining 0.26% and France’s CAC 40 is up 0.43%. Switzerland’s SMI is up marginally.

In the UK market, Fresnillo is climbing 5.7%. IAG, JD Sports Fashion, Associated British Foods, Aveva Group, Compass Group, BP, Hikma Pharmaceuticals and Royal Dutch Shell are up 2.5 to 4.7%. Barclays, Standard Chartered, Glencore and Prudential are also up sharply.

In France, Sodex, ArcelorMittal, Unibail Rodamco, Societe Generale, Renault, Technip and Vinci are gaining 2 to 5%.

In the German market, Thyssenkrupp is rising 2.5%. Lufthansa, Covestro, Daimler, Munich RE, Deutsche Post, Allianz, BASF, Bayer and MTU Aero Engines are up 1 to 2%.

In economic news, the unemployment rate in the euro area fell to 7.9% in May from 8.1% in the previous month, data from Eurostat showed. The rate was forecast to fall marginally to 8%.

Data showed that the EU unemployment rate was 7.3% in May, down from 7.4% in April.

A report from Destatis showed Germany’s retail sales grew 4.2% month-on-month in May, in contrast to a 6.8% decrease in April. On a yearly basis, retail turnover was down 2.4%, in contrast to April’s 5.1% rise.

The euro area manufacturing sector grew at a fresh survey record pace for a fourth successive month in June as demand surged with the further relaxation of containment measures, final data from IHS Markit showed.

The final manufacturing Purchasing Managers’ Index rose to 63.4 in June from 63.1 in May. The final reading was higher than the flash 63.1.

June marked a twelfth successive month that the index has posted above the 50.0 no-change mark that separates growth from contraction.

Germany’s manufacturing sector showed an improved performance in June, with rates of output and new order growth accelerating for the first time in three months. The headline IHS Markit/BME manufacturing PMI advanced to 65.1 in June from 66.4 in the previous month. The flash reading was 64.9.

The French manufacturing sector ended the second quarter with another strong growth across output, new orders and employment. Although the manufacturing PMI fell marginally to 59.0 in June from 59.4 in May, the index signaled another substantial growth. The initial reading was 58.6.

Data from the Federal Statistical Office showed Switzerland’s consumer price inflation remained stable in June, growing 0.6% year-on-year, same as seen in May. Economists had expected inflation to rise 0.7%. The core CPI rose 0.3% yearly in June and remained unchanged from the previous month.

Another data from the same source showed showed Switzerland’s retail sales increased in May, growing by 2.8% year-on-year. On a monthly basis, seasonally adjusted retail sales declined 1.8% in May.