Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Best session in 11 weeks for European stocks as banks surge

10/05/2021 | 04:49am EST
German share price index DAX graph is pictured at the stock exchange in Frankfurt

* Banks jump on rate expectations

* Euro zone business growth slowed in Sept - PMI

* Infineon up on upbeat forecast

Oct 5 (Reuters) - A 3.5% jump in European banks and a rally in beaten down technology companies pushed an index of European stocks up over 1% on Tuesday, also helped by positive U.S. data bolstering Wall Street.

The European tech sector jumped 2.2%, breaking a seven-session losing run over which it fell 11.7%. U.S. peers also rallied as investors moved into growth names.

Chipmaker Infineon's 4.8% climb led gains after it confirmed its 2021 revenue and said it expects results to rise further next year.

The pan-European STOXX 600 index ended up 1.2% with all major sectors in the black, helping it log its best session since July 21.

Bank stocks hit an over 1-1/2 year high. JPMorgan said it is still "overweight" on European banks citing upside to capital return and rates outlook.

Spain's BBVA, Italy's Intesa Sanpaolo and Finland's Nordea Bank were JPM's top picks. Shares in Italy's Unicredit jumped 4.3% after the bank confirmed its third-quarter forecast to analysts.

"Rate-sensitive banking stocks are enjoying a boost as investors begin to seriously price in rate rises," said Danni Hewson, financial analyst at AJ Bell.

"But there are big questions about how the economy is really bouncing back, and cost pressures are taking their toll on businesses and the consumer," Hewson said.

Business growth in the euro zone slowed in September as supply issues constrained activity, while elevated inflationary pressures dented demand, IHS Markit's survey showed.

"The PMIs are consistent with the euro-zone's economic recovery losing some momentum... The surveys also show that price pressures are spreading to the services sector, even in parts of the periphery," said Jessica Hinds, Europe economist at Capital Economics.

Investors are now awaiting U.S. jobs data on Friday for signs on the tapering timeline of Federal Reserve asset purchases. Data on Tuesday showed U.S. services industry activity nudged up in September.

British baker and fast-food chain Greggs climbed 11.1% to top the STOXX 600 after it raised its full-year profit outlook despite staffing and supply chain issues.

Third-quarter earnings for companies listed on the STOXX 600 are expected to increase 45.6% from a year ago, according to Refinitiv data.

German leasing company Grenke tumbled 6.7% after it cut its full-year forecast range, while audio solutions provider GN Store Nord slumped 7% after a forecast cut at the company's Hearing unit due to delays in product launches.

Dutch tech investor Prosus rose 2.6% after it got regulatory approval to increase its stake in German food delivery company Delivery Hero. (Reporting by Sruthi Shankar and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila, Ramakrishnan M. and Bill Berkrot)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BANCO BILBAO VIZCAYA ARGENTARIA, S.A. -7.34% 4.846 Delayed Quote.20.10%
DELIVERY HERO SE 2.86% 116.95 Delayed Quote.-7.91%
GN STORE NORD A/S -0.43% 397.1 Delayed Quote.-18.49%
GREGGS PLC -2.29% 2985 Delayed Quote.66.76%
GRENKE AG -5.06% 30.8 Delayed Quote.-20.66%
INFINEON TECHNOLOGIES AG -4.20% 39.575 Delayed Quote.26.08%
INTESA SANPAOLO S.P.A. -5.75% 2.1565 Delayed Quote.12.75%
PROSUS N.V. -2.85% 71.31 Real-time Quote.-19.30%
UNICREDIT S.P.A. -6.90% 10.494 Delayed Quote.37.21%
Latest news "Economy & Forex"
02:01pGermany says working with U.S. on Nord Stream 2 deal
01:45pOPEC postponses technical meetings to evaluate Omicron impact -sources
01:43pOPEC postponses technical meetings to evaluate Omicron impact -sources
01:39pBritain to call G7 health ministers meeting over Omicron
01:39pUk government says uk to convene urgent meeting of g7 health ministers on november 29 to discuss developments on omicron
01:38pUk government says all travellers returning to the uk to require pcr testing regardless of vaccination status from tuesday 30 november
01:38pUk government says face coverings will be mandatory in shops and on public transport from tuesday
01:05pWHO says it is not yet clear if Omicron causes more severe disease
01:00pUNECA UNITED NATIONS ECONOMIC COMMISSION FOR AFR : New study shows Accra generates one-third of Ghana's GDP
12:36pFrance says it will not be held hostage by British politics on migration
Latest news "Economy & Forex"