Left Menu
Development News Edition

European stocks extend gains for third day, political woes hit Italy

European shares rose for a third straight session on Thursday, as a jump in technology stocks, hopes of a large stimulus under incoming U.S. President Joe Biden and upbeat Chinese export data boosted sentiment. The pan-European STOXX 600 index rose 0.7%, hitting new highs since February 2020, with mining, auto and travel stocks among the top performers.

Reuters | Updated: 14-01-2021 22:48 IST | Created: 14-01-2021 22:46 IST
European stocks extend gains for third day, political woes hit Italy
Representative Image Image Credit: Pixabay

European shares rose for a third straight session on Thursday, as a jump in technology stocks, hopes of a large stimulus under incoming U.S. President Joe Biden and upbeat Chinese export data boosted sentiment.

The pan-European STOXX 600 index rose 0.7%, hitting new highs since February 2020, with mining, auto and travel stocks among the top performers. Biden is expected to unveil a stimulus package proposal later in the day, designed to jumpstart a pandemic-struck U.S. economy with an economic lifeline that could exceed $1.5 trillion.

Chinese exports grew more than expected in December, data showed, while Germany's economy shrank by a smaller-than-expected 5.0% in 2020 as a strong state response helped limit the havoc caused by the COVID-19 pandemic. Still, investors were worried the latest coronavirus lockdowns in Europe could further slow a recovery even as vaccination programmes began.

"We came into the year with a view that vaccines will kick in over the first half of the year and economic growth should bounce back materially. Obviously that is more biased to the second half of the year," said Nick Peters, multi-asset portfolio manager at Fidelity International. "An uncertain start to the year was within our expectations, and as long as we can see mobility data, PMIs beginning to improve over the year, we're going to be comfortable with the risk position that we've taken."

European chipmakers received a boost after Taiwan's TSMC posted a record high quarterly profit due to demand for devices requiring high-end chips. Semiconductor equipment makers ASMI jumped 7.6% and ASML rose 5.9%, while the wider tech index was up 1.9%.

Finnish telecom network equipment maker Nokia jumped 5.0% after announcing mutiple 5G deals with companies including Alphabet's Google and T-Mobile. Political worries hit Italy's FTSE MIB, down 0.5%, after former premier Matteo Renzi withdrew his small Italia Viva party from the ruling coalition, sinking Prime Minister Giuseppe Conte's government on disagreements over funding.

Shares in Italian lenders, whose big sovereign bond portfolios makes them sensitive to political risk, fell 0.9%. "While not our base case, early elections look possible and would likely lead to a new government less aligned with the EU," analysts at Morgan Stanley said in a note.

Carrefour slipped 2.5% after the French government took a tough line against any takeover of the retailer by a foreign company in the wake of a $20 billion bid approach by Canadian convenience-store operator Alimentation Couche-Tard . Swiss plumbing supplies maker Geberit dropped 5.6% after it revealed a hit to sales from the surge in value of the franc during 2020.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Chennai, Jan 26 (PTI): Highlights from the Southern region at 5.10 PM.

MDS2 TL-VIRUS-CASES Telangana logs 189 new COVID-19 cases, two deaths pushtoll to 1,592 Hyderabad Telangana recorded 189 new COVID-19 cases,pushing the tally to 2,93,590, while the death toll rose to1,592 with two more fatalities, the state...

Delhi-NCR has maximum stuck housing units at 1.9 lakh worth nearly Rs 1.2 lakh cr: Report

Delhi-NCR property market has maximum stuck housing units at 1.9 lakh, worth nearly Rs 1.2 lakh crore, that were delayed by at least seven years, according to property consultant Anarock.A total of 1,90,120 housing units, worth Rs 1,19,291 ...

Coronavirus: Latest updates on COVID-19 crisis around the world

Here are the latest updates on the coronavirus crisis in India and other parts of the world on Tuesday.442 p.m.Israeli Prime Minister Benjamin Netanyahu greeted his Indian counterpart, Narendra Modi, on Tuesday, on the occasion of the count...

German police: man attacks people with knife in Frankfurt

A man with a knife attacked and wounded several people in the city of Frankfurt on Tuesday morning before he was detained by authorities.Frankfurt police said in a tweet that none of the victims had life-threatening injuries. They did not r...

Give Feedback