UPDATE 2-Rebound in factory output lifts European stocks after selloff last week

UPDATE 2-Rebound in factory output lifts European stocks after selloff last week

Reuters  | Nov 03, 2020 01:20

UPDATE 2-Rebound in factory output lifts European stocks after selloff last week

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* German stocks outperform on factory data
* UK midcaps hit by lockdown worries
* All eyes on U.S. presidential election
* BlackRock downgrades European equities as virus surges

(Updates to market close)
By Sruthi Shankar
Nov 2 (Reuters) - European stocks started November trading
on a strong footing as a rebound in factory activity around the
world outweighed worries over a resurgence in COVID-19 cases
that is driving major economies in the continent back into a
The exporter-heavy German DAX index .GDAXI jumped 2.0% as
a survey showed factories in Europe's largest economy saw record
growth in new orders in October, with numbers improving in other
euro zone economies as well. Similar sets of data from China and the United States also
pointed to a strong rebound in manufacturing activity, boosting
cyclical sectors such as oil & gas .SXEP , banks .SX7P and
insurers .SXIP and chemical companies .SX4P in Europe.
Wall Street stocks also gained momentum as investors
prepared for the U.S. election, with Democratic challenger Joe
Biden leading over Republican President Donald Trump in national
opinion polls, but the race looks close in battleground states.
.N "Compared to the status quo if Trump were to secure a second
term, a Biden win and Democratic sweep could be perceived as
more beneficial to Europe," Barclays' European equity strategist
Emmanuel Cau said in a note.
"This is due to possibly reduced trade uncertainty, stronger
ties with the U.S. and greater stimulus lifting the reflation
Morning trading was hit by a tech glitch, with the
pan-European STOXX 600 .STOXX and STOXX 50 .STOXX50 indexes
failing to show opening prices due to "input data problems",
index operator Qontigo told its clients. The indexes were back online an hour after the open, with
the STOXX 600 rebounding 1.6% from a five-month low hit last
London's domestically exposed midcap index .FTMC slipped
0.2% after Prime Minister Boris Johnson announced new
restrictions to curb the coronavirus across England that would
kick in after midnight on Thursday and last until Dec. 2.
Europe's main regional indexes tumbled to multi-month lows
last week after Germany and France imposed nationwide lockdowns
and several other countries tightened coronavirus restrictions
to limit the spread of the virus. The latest round of curbs drove U.S. banks Goldman Sachs and
Morgan Stanley to cut Europe's fourth-quarter economic
forecasts, while BlackRock, the world's largest asset manager,
downgraded European equities to "neutral." Among individual stocks, Italy's biggest payments group Nexi
NEXII.MI slipped 2.6% after saying that it was in exclusive
merger talks with Denmark's Nets over a potential $8 billion
tie-up. British online supermarket and technology group Ocado
OCDO.L jumped 8.0% after saying that it would buy two robotics
companies and upgraded its full-year earnings outlook.

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.