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  >  Indexes & Markets

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

European stocks gain on vaccine, stimulus hopes; earnings eyed

07/13/2020 | 10:30am EST
The German share price index DAX graph is pictured at the stock exchange in Frankfurt

European shares rose on Monday as progress on a possible COVID-19 vaccine, some upbeat earnings reports and stimulus talks fed into hopes of an economic recovery from the coronavirus-induced downturn.

The pan-European STOXX index rose 1%, with miners gaining 1.7% on optimism over China's recovery and surging metal prices.

Other growth-oriented sectors such as travel & leisure, banks <.SX7P>, technology stocks <.SX8P> and oil & gas rose between 1.9% and 1.4%.

Two experimental coronavirus vaccines by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer have received the U.S. Food and Drug Administration's "fast track" designation, the companies said on Monday.

"The sooner a vaccine comes out the more confident economies can get about opening up completely and start to get on the road to recovery," said Michael Baker, analyst at ETX Capital in London. He added that optimism also stems from the fact that the companies involved are ones with the capacity to mass-produce.

Shares of BioNTech's depository receipt on the Frankfurt exchange jumped 13.5%.

This week also kicks off the U.S. and European quarterly earnings season and includes a summit over the European Union recovery fund and a European Central Bank policy meeting.

"There appears to be some optimism that forecasts have been lowered to such an extent that businesses will be able to clear this low bar and surpass expectations," AJ Bell Investment Director Russ Mould said.

Companies listed on the STOXX 600 are expected to report a 54% drop in second-quarter profit, the worst ever reading for Europe, according to Refinitiv data.

Nordic bank DNB rose 9.9% after an earnings beat, while private security company G4S gained 9.3% on announcing that first-half profit would surpass expectations.

While the ECB is not expected to make a major move, European leaders will meet on July 17-18 to hammer out details on the $750 billion euro recovery fund.

Financial markets have taken comfort from trillions of dollars in stimulus even as the World Health Organization reported a record increase in global coronavirus cases on Sunday.

In other company news, Finnish valves maker Neles surged 37.6% and hit a record high after Swedish industrial group Alfa Laval announced a recommended 1.73 billion euro ($1.96 billion) cash bid.

Meanwhile, Atlantia slumped 15.2% after Italy's prime minister dismissed the toll road operator's bid to keep its lucrative toll road concession.

French video games group Ubisoft fell 5% as it announced staff departures after a review in response to allegations of misconduct at the company.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Mark Heinrich)

By Sruthi Shankar and Susan Mathew

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AJ BELL PLC -1.05% 424.5 Delayed Quote.0.00%
ALFA LAVAL AB -1.50% 216.7 Delayed Quote.-6.74%
ATLANTIA SPA -2.68% 15.265 Delayed Quote.-24.56%
BIONTECH SE 6.21% 121.09 Delayed Quote.236.51%
DNB ASA 0.00% 161.25 Delayed Quote.-1.68%
EURO STOXX 50 -0.11% 3521.32 Delayed Quote.-5.87%
G4S PLC 7.42% 246 Delayed Quote.5.05%
LONDON BRENT OIL 1.27% 47.86 Delayed Quote.-27.74%
NELES OYJ -1.01% 10.825 Delayed Quote.5.86%
NORDIC SEMICONDUCTOR ASA -1.44% 123.6 Delayed Quote.125.13%
PFIZER, INC. 3.53% 40.8 Delayed Quote.6.17%
STOXX EUROPE 600 -0.05% 391.69 Delayed Quote.-5.76%
STOXX EUROPE 600 NR -0.05% 862.69 Delayed Quote.-3.83%
UBISOFT ENTERTAINMENT -1.50% 77.5 Real-time Quote.27.77%
WTI 1.59% 44.855 Delayed Quote.-26.33%
Latest news "Markets"
04:22pWALL STREET STOCK EXCHANGE : Stocks Close Higher After Paring Early Declines
04:04pTSX rises 0.32% to 17,352.80
03:18pOil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts
12:18pFTSE 100's surge on UK vaccine approval pulls European shares off lows
12:06pWALL STREET STOCK EXCHANGE : Stocks Wobble Between Small Gains and Losses
11:59aLONDON STOCK EXCHANGE : FTSE 100 jumps as pound falls on doubts over Brexit trade deal
11:32aWALL STREET STOCK EXCHANGE : Stocks Waver After S&P 500's Tuesday Record
11:05aSalesforce.com Down Over 7%, Worst Performer in DJIA, S&P 500 So Far Today -- Data Talk
09:47aWALL STREET STOCK EXCHANGE : Stocks Pull Back After S&P 500's Tuesday Record
08:45aU.S. Stock Futures Pull Back After S&P 500 Record
Latest news "Markets"