European equities stabilize after sell-off from previous session
European stocks stabilized on Tuesday after suffering their worst selloff this year in the previous session over fears that the spread of the Delta variant of Covid-19 could derail the global economy.
The rally in stock values was helped by a handful of positive corporate earnings and production updates from mining stocks.
The Iseq climbed just over 1% as stocks across Europe returned to positive territory after a scorching start to the week.
Bank of Ireland added 2 percent to € 4.05, while AIB slipped 0.1% to € 1.82 on the day it announced a plan to close branches as part of a new shift to online banking.
Following an easing of travel restrictions and an optimistic outlook statement from rival EasyJet, Ryanair advanced 2% to close at € 14.95. Cement maker CRH, the index’s biggest stock, also had a good day, up 1.9% to € 40.58.
Packing group Smurfit Kappa increased by 0.9% to € 44.90, while Cairn Houses rose 2% to € 1.03 in a session in which many stocks posted gains on relatively low trading volumes.
Mining companies and bank stocks helped the FTSE 100 rebound 0.5%, while the domestically-focused mid-cap index rose 0.8%.
Global miner Anglo-American rose 0.7% after saying its production rose 20% in the second quarter, driven by strong diamond and platinum production, while BHP Group finished at 1.9 percent after also reporting positive production figures.
Unilever lost 0.6% after Israel warned the consumer goods group of the “serious consequences” of a decision by subsidiary Ben & Jerry’s to stop selling ice cream in the territories occupied by Israel, and urged US states to invoke anti-boycott laws.
EasyJet gained 0.9% after saying it planned to steal 60% of its pre-pandemic capacity during the July-September period.
Carnival gained 3.3% after saying it plans to resume cruises with 65% of its total fleet capacity by the end of 2021, betting concerns over a resurgence of Covid-19 cases will deter not vacationers.
The pan-European Stoxx 600 rose 0.5% after concerns over the rapidly spreading variant of the Delta coronavirus and slowing economic growth caused the index to drop 2.3% on Monday.
In Frankfurt, the Dax gained 0.55%, while in Paris, the Cac 40 closed up 0.8%.
Swiss bank UBS climbed 5.3 percent after posting a 63 percent jump in second-quarter net income, helped by a burgeoning wealth management business. Peers Swiss credit and Julius Baer also increased.
Swedish manufacturer of household appliances Electrolux fell 6.4% after reporting lower than expected second-quarter operating profit and warning that global supply chain problems would worsen in the coming months. Swedish car manufacturer AB Volvo fell 2.5% as it warned of further interruptions and production stoppages this year due to chip shortages.
Norwegian telecom operator Telenor rose 3.8% after raising its earnings outlook for the full year.
Major Wall Street indices surged on Tuesday, as economically sensitive stocks made a comeback after falling sharply in the previous session, while IBM gained on the good results of the second quarter.
Shares of the tech company climbed 3.5% in the first few hours of trading and were the biggest winners in the Dow, as brokerages raised their share price targets following robust growth of its cloud and consulting activities.
All 11 sector indices of the S&P 500 advanced, with the energy, financials and industrials sectors each increasing by more than 2%.
The focus is now on reporting earnings from companies such as Netflix and Chipotle Mexican Grill due after market close. – Additional report: Reuters.