European equities advance on economic optimism

(RTTNews) – European stocks rose on Wednesday as inflation fears eased and positive data on business and consumer confidence in France boosted hopes for an economic recovery.

The consumer confidence index in France rose to 97 in May against 95 in April, said the statistical office Insee. The score is in line with the expectations of economists.

The manufacturing sentiment index rose to 107 in May from 104 the month before. Economists had forecast the score to rise moderately to 106. This was the highest score since August 2018, when the reading was 109.

US Treasury yields have been mixed after Federal Reserve officials reiterated their conciliatory views on easy monetary policy and inflation.

Closer to home, ECB executive board member Fabio Panetta told Nikkei that the economic recovery in the euro area was not strong enough for the European Central Bank to reduce its emergency asset purchases during of a meeting in June.

The pan-European Stoxx 600 rose 0.2% to 446.24 after finishing flat with a positive bias on Tuesday. The German DAX edged up 0.1%, the French CAC 40 index by 0.3% and the UK’s FTSE 100 by 0.1%.

French food company Danone fell 1.1 percent after Berenberg downgraded the title to “sell.”

Shares of Delivery Hero rose 0.6%. Spanish q-commerce start-up Glovo said it would take over the online food ordering company’s business in Bosnia and Herzegovina, Bulgaria, Montenegro, Romania and Serbia, and acquire certain assets from its Croatian activities.

The quality assurance group Intertek lost 3.6%. The UK company announced like-for-like revenue growth of 2.7% for the period January to April 2021 and said it was on track to meet 2021 revenue, growth targets margin and free cash flow.

British Land real estate investment trust fell 1.8% after posting its third consecutive annual loss.

Retailer Marks & Spencer jumped 4.7% after well-received results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Eleanor Blackburn

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