European stocks rebounded on Tuesday, bund yields turned positive and the euro rose after reports that the European Union is mulling a joint-bond sale to fund energy and defense spending.
The European Union will unveil a plan as soon as this week to jointly issue bonds on a potentially massive scale to finance energy and defense spending as the bloc copes with the fallout from Russia’s invasion of Ukraine, the Bloomberg reported.
As commodity prices soar, investors eye U.S. consumer inflation data due Thursday for additional clues about the pace of the Federal Reserve’s monetary tightening.
The pan European Stoxx 600 rose 0.9 percent to 420.99, marking its first advance in four sessions. The German DAX gained 1.3 percent and France’s CAC 40 index rallied 2 percent while the U.K.’s FTSE 100 was little changed.
Banks topped the gainers list, with Commerzbank, Deutsche Bank, BNP Paribas and Societe Generale climbing 5-7 percent.
German energy generation and trading company Uniper climbed 6.5 percent after backing its financial outlook.
Automotive and industrial supplier Schaeffler gained nearly 8 percent after reporting turnaround results for the fiscal year 2021.
M&G shares soared 11.6 percent in London as the investment manager announced a £500mln share buyback program.
Unite Students advanced 1.4 percent. The owner, manager and developer of student accommodation has sold a portfolio of 11 properties, comprising 4,488 beds for £306m to an affiliate of Lone Star Funds.
Geotechnical specialist contractor Keller added 2.7 percent after posting a rise in 2021 pretax profit.
British Land rose 2.2 percent after the real estate investment trust announced a new joint venture with Melbourne-based pension fund AustralianSuper.
IWG jumped nearly 13 percent. After posting improved annual results, the flexible workspace provider announced the merger of its digital assets with The Instant Group.
Valneva SE rose over 4 percent in Paris. The French biotech firm said that it has successfully completed the phase III pivotal trial of its single-shot Chikungunya vaccine candidate VLA1553.
In economic releases, German industrial output advanced 2.7 percent month-on-month, faster than the revised 1.1 percent increase seen in December, Destatis reported. Production was forecast to climb at a slower pace of 0.5 percent.
On a yearly basis, industrial output grew 1.8 percent, in contrast to the 2.7 percent decline posted in the previous month.
U.K. retail sales logged another strong growth in February on higher demand for furniture and home accessories and clothing and footwear.
Like-for-like sales increased 2.7 percent on a yearly basis in February as restrictions were lifted, data from the British Retail Consortium and KPMG showed. At the same time, overall retail sales grew 6.7 percent.
Business News
European Shares Rebound On EU Joint Bond Sales Report
2022-03-08 10:01:36
