Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

European shares rally on improving data, insurers jump

share with twitter share with LinkedIn share with facebook
06/03/2020 | 12:29pm EDT
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

European shares rallied on Wednesday, with insurers jumping after France's AXA said it would pay a dividend, while improving global data spurred bets of faster economic recovery from the coronavirus crisis.

The pan-European STOXX 600 rose 2.5% to close at its highest since March 6, with Germany's DAX outpacing the rest of Europe with a 3.9% gain.

The German index recorded its strongest close since Feb 27, and is just 9.5% below its all-time high.

European markets have performed strongly so far this week as several countries eased strict lockdown measures, while hopes of more stimulus and encouraging developments on a potential COVID-19 treatment have helped the STOXX 6000 recover more than 37% from March lows.

"When (the slump) happened, there was not a fundamental issue in the economy. It was all down to a single event and there's no reason why we can't come back very strongly," said Randeep Somel, associate portfolio manager at M&G Investments.

For a graphic on EU Stocks Recovery:

China's services sector returned to growth in May, a survey showed, while data from the euro zone suggested the worst of the pandemic's economic impact was over.

The European Central Bank meets on Thursday and is expected to increase its bond purchases by 500 billion euros.

"While economists broadly agree the ECB will meet market expectations, it would not be out of the realm of possibility... to delay the increase - given that its current program is far from depleted," Cantor Fitzgerald analysts wrote in a note.

Insurers, automakers, banks <.SX7P> and travel & leisure stocks led the gains, up between 3.8% and 6.8%, as investors found value in beaten-up cyclical sectors.

AXA jumped 10.4% after saying it would pay a 2019 dividend to shareholders and shares in Allianz, Prudential and Generali also rose between 7.8% and 8.5%.

Renault surged 10.5% after it finalised a 5 billion euro ($5.60 billion) loan from the French government and Goldman Sachs upgraded its stock to "buy".

Shares in Infineon technologies, AMS and ASM International rose between 3.8% and 7.3% after U.S. chipmaker Microchip raised its earnings forecast.

Lufthansa gained 7.7% as it vowed to step up restructuring measures after posting a first-quarter net loss of 2.1 billion euros ($2.35 billion).

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur, Kirsten Donovan)

Stocks mentioned in the article
ChangeLast1st jan.
ALLIANZ SE 1.17% 182.68 Delayed Quote.-16.36%
ASM INTERNATIONAL N.V. 0.96% 146.5 Delayed Quote.46.28%
ASSICURAZIONI GENERALI S.P.A. 0.75% 13.495 Delayed Quote.-26.64%
AXA 2.03% 18.28 Real-time Quote.-27.20%
DAX 1.16% 12633.71 Delayed Quote.-4.64%
DEUTSCHE LUFTHANSA AG -0.85% 8.648 Delayed Quote.-47.30%
EURO STOXX 50 1.07% 3296.22 Delayed Quote.-12.92%
INFINEON TECHNOLOGIES AG 4.13% 22.55 Delayed Quote.11.03%
MICROCHIP TECHNOLOGY, INC. -0.87% 106.61 Delayed Quote.1.80%
PRUDENTIAL PLC 0.89% 1243.5 Delayed Quote.-14.18%
RENAULT 3.77% 22.415 Real-time Quote.-46.86%
STOXX EUROPE 600 0.88% 366.83 Delayed Quote.-12.55%
THE GLOBAL LTD. -3.30% 205 End-of-day quote.-56.48%
THE GOLDMAN SACHS GROUP, INC. 4.44% 205.56 Delayed Quote.-10.60%
share with twitter share with LinkedIn share with facebook
Latest news "Markets"
07/10WALL STREET STOCK EXCHANGE : Stocks Shrug Off Virus Worries, Log Weekly Gains
07/10WALL STREET STOCK EXCHANGE : Stocks Poised for Modest Weekly Gains
07/10WALL STREET STOCK EXCHANGE : Stocks Poised for Modest Weekly Gains
07/10WALL STREET STOCK EXCHANGE : Stocks Poised for Modest Weekly Gains
07/10WALL STREET STOCK EXCHANGE : Tesla appears poised to electrify S&P 500
Latest news "Markets"