UPDATE 2-European stocks rack up hefty gains as cyclicals rally

UPDATE 2-European stocks rack up hefty gains as cyclicals rally

Reuters  | Jun 06, 2020 00:50

UPDATE 2-European stocks rack up hefty gains as cyclicals rally

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* U.S. jobs data further spurs demand for risky assets
* Euro zone banks record best week since 2009
* Hugo Boss jumps after confirming talks for new CEO

(Updates to market close)
By Sruthi Shankar
June 5 (Reuters) - European stocks racked up their best week
in two months on Friday, with investors scooping up battered
shares of banks, automakers and travel companies amid growing
signs that the pandemic-hit global economy is recovering.
The pan-European STOXX 600 .STOXX ended the day 2.5%
higher, getting an afternoon boost from data that showed U.S.
economy unexpectedly added jobs in May after suffering record
losses the prior month. Euro zone blue chip stocks .STOXXE jumped 3.8% and the
bloc's lenders .SX7E rallied 7.6% for their best weekly gain
since 2008's global financial crisis.
Risky assets across the world have been lifted this week as
economies continued to emerge from their lockdowns, while a
bigger-than-expected stimulus package from the European Central
Bank and hopes for European-Union wide fiscal action gave a
further boost to the continent's markets.
Growth-sensitive cyclical sectors that have suffered badly
during the coronavirus crisis, such as oil & gas .SXEP ,
automakers .SXAP and travel & leisure .SXTP , were up between
4.9% and 5.8%.
The auto-heavy Germany DAX .GDAXI is just 6.7% away from
hitting an all-time high.
"It only takes a small change in sentiment toward these
stocks – a glimmer of optimism that the virus is under control
or ever increasing stimulus – and investors will question
whether the reversal has begun," said Lewis Grant, a senior
portfolio manager at Federated Hermes.
"These rallies can become self-sustaining as more investors
rush in through fear of missing out," he added.
Analysts at Bank of America on Friday forecast European
stocks would rise another 10% by the end of September on
expectation of a pick-up in business activity. of a revival in tourist traffic helped British Airways
owner-IAG ICAG.L jump 13.6%, while shares in easyJet EZJ.L ,
Lufthansa LHAG.DE and Air France AIRF.PA gained between 5.5%
and 12.5%. .L
Airbus AIR.PA rose 12.5% after Australia's Qantas QAN.AX
announced plans to reactivate plans to order planes.
German fashion house Hugo Boss BOSSn.DE was up 11.4% after
it confirmed ongoing talks for a new chief executive officer
with Daniel Grieder, former head of Tommy Hilfiger Global & PVH
Europe. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
European stocks recover nearly 2/3rd of virus-led losses https://tmsnrt.rs/2Y4mzYr

Related News

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 App

More markets insights, more alerts, more ways to customize assets watchlists only on the App

Investing.com is better on the App!

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