European equities rally after their strongest drop in 3 months the day before

European equities rally after their strongest drop in 3 months the day before

European equities rally after their strongest drop in 3 months the day before

European stocks are recovering today after Monday's worst daily drop in more than 3 months, MarketWatch reported.

The composite index of the largest enterprises of the region Stoxx Europe 600 by 11:14 Moscow time increased by 0.7% and reached 359.31 points. It lost 3.2% on Monday.

The German indicator DAX by this time rose by 1.07%, the French CAC 40 – by 0.42%, the British FTSE 100 – by 0.27%, the Italian FTSE MIB – by 0.95%, the Spanish IBEX 35 – by 0, 26%.

Kingfisher (LON: KGF), one of the UK's largest home furnishings chains, jumped 6.4% during trading on strong financials. In the first half of the year, the retailer's pre-tax profit was 398 million pounds ($ 510 million), compared with 245 million pounds in the same period last year. Revenue declined to £ 5.92bn from £ 6bn, but the company saw sales rebound during the second quarter.

Suez's market value is up 0.7%. The French company announced that it is in exclusive negotiations to sell its Swedish waste recycling business to the Schwarz Group. Its cost may be 3.7 billion Swedish kronor ($ 418 million). The deal is scheduled to be completed by the end of this year.

Volkswagen shares gained 1.7%. According to media reports, the German carmaker is negotiating the possible sale of the luxury sports car brand Bugatti to Croatian Rimac Automobili. The discussions are at an early stage and there is no certainty that they will eventually lead to an agreement. However, VW apparently wants to get rid of the brand.

Whitbread (LON: WTB) shares were down 3.1% during trading. The owner of the UK's largest hotel brand Premier Inn announced its intention to cut 6 thousand jobs (about 18% of the state). The company's LFQ sales in the second financial quarter ended August 27 plummeted 75%.

The securities of Deutsche Lufthansa AG (DE: LHAG) continue to fall in price (-2.3%). The German airline announced a day earlier that it would carry out further restructuring, including a more significant reduction in the fleet and the number of employees.

According to the head of the Federal Reserve System (FRS) Jerome Powell, the economic measures taken in response to the COVID-19 pandemic have mitigated the negative effects of the recession caused by the pandemic.

“Our economy will fully recover from this difficult period,” Powell said in a speech prepared for this week's US Congressional hearings and released late Monday. The Fed will “do everything it can, no matter how long it takes, to ensure that the recovery is as active as possible and to limit the long-term damage to the economy.”

The head of the Federal Reserve will speak today at the House of Representatives Financial Services Committee on supporting the economy amid the coronavirus pandemic. Powell will have another speech in the House of Representatives on Wednesday, and on Thursday before the Senate Banking Committee.

The Swedish Central Bank on Tuesday decided to keep the base interest rate at zero, while the management stressed that it will remain so in the coming years. The Riksbank also announced the continuation of the asset repurchase program and all liquidity programs launched in 2020 in response to the difficulties caused by the coronavirus.

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