European markets closed higher on Thursday closed higher on Thursday, reacting to some fairly encouraging economic data from the region, and on Biden’s announcement of a multi-trillion-dollar infrastructure investment plan.
Worries about rising coronavirus cases and extension of lockdown restrictions limited markets’ gains.
The pan European Stoxx 600 climbed 0.61%. The U.K.’s FTSE 100 gained 0.35%, Germany’s DAX surged up 0.66%, France’s CAC 40 advanced 0.59% and Switzerland’s SMI ended 0.64%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Netherlands, Poland, Portugal, Sweden and Turkey closed with sharp to moderate gains.
Czech Republic, Ireland and Norway ended modestly higher. Russia drifted lower and Spain closed flat.
In the UK market, IAG rallied 5.7%. Melrose Industries, Fresnillo, Rolls-Royce Holdings, Ashtead Group, Rentokil Initial, Ferguson, NEXT, JD Sports Fashion and Just Eat Takeaway gained 3 to 4%.
Evraz, British American Tobacco, Standard Chartered, BP, Sainsbury, CRH, BHP Group and Rio Tinto ended notably lower. Deliveroo drifted lower again, after plunging sharply on its debut on Wednesday.
In the French market, shares of construction firm Vinci rose sharply after the company said it has signed an agreement to acquire ACS’s energy business, as part of its strategic move to create a global player in energy contracting and to develop renewables projects.
Airbus Group, Safran, Thales, Renault, Dassault Systemes, Veolia, Capgemini, Kering and STMicroElectronics gained 1.5 to 4%.
Atos shares plunged more than 12% weighed down by news that an audit found accounting errors at two of the company’s U.S. units.
In Germany, Infineon Technologies and BE Semiconductor shares sharply after TSMC, the world’s largest manufacturer of advanced semiconductors, unveiled capacity expansion plans and U.S. chipmaker Micron Technology Inc forecast third-quarter revenue above analysts’ forecasts.
MTU Aero Engines, RWE, SAP, Deutsche Wohnen, Vonovia, Adidas, Continental and Volkswagen gained 1 to 3.2%, while Lufthansa, Bayer and Daimler closed notably lower.
In economic releases, the euro area manufacturing sector grew at the strongest pace in nearly 24 years of data collection, underpinned by strong production and orders, final data from IHS Markit showed.
The final factory Purchasing Managers’ Index rose to 62.5 in March from 57.9 in February. The flash reading was 62.4. Growth was broad-based across the region, with Germany and the Netherlands leading the way.
Elsewhere in the U.K., IHS Markit’s closely-watched purchasing managers’ index (PMI) scored 58.9 in March — a 121-month high and ahead of forecasts.
German retail sales grew for the first time in three months in February but the pace of expansion was slower than economists’ expected, data from Destatis revealed.
Retail sales rose 1.2% month-on-month in February, reversing a 6.5% fall in January. Economists had forecast sales to grow at a faster pace of 2%. This was the first increase in three months.
Market Analysis
European Markets Close Higher On Recovery Hopes
2021-04-01 18:03:26
