European stocks claw back some losses, helped by miners, UBS
Miners, among sectors that bore the brunt of Monday's bruising selloff, rose 1.2% after BHP Group and Anglo American provided upbeat production numbers. Swiss bank UBS climbed 4.0% after it posted a 63% jump in second-quarter net profit, helped by a booming wealth management business.
European stocks stabilized on Tuesday after their worst sell-off this year in the previous session, helped by a handful of positive corporate earnings and production updates from miners.
The pan-European STOXX 600 index rose 0.5%, after worries about the fast-spreading coronavirus Delta variant and slowing economic growth had knocked 2.3% off the index on Monday. Miners, among sectors that bore the brunt of Monday's bruising selloff, rose 1.2% after BHP Group and Anglo American provided upbeat production numbers.
Swiss bank UBS climbed 4.0% after it posted a 63% jump in second-quarter net profit, helped by a booming wealth management business. Peers Credit Suisse and Julius Baer also rose. "Although the U.S. economy is in a slowdown phase and we expect European growth to peak this summer, we continue to favor risk assets over a 12-month horizon," analysts at BCA Research wrote in a note.
"The UK is a case in point — broad-based vaccinations are keeping hospitalization rates there low despite the sharp jump in COVID-19 infections. Thus, the market impact of the Delta variant may ultimately prove fleeting in developed economies." British airline EasyJet gained 1.9% after saying it plans to fly 60% of its pre-pandemic capacity in the July-September period.
Europe's travel & leisure index has fallen sharply from its April record highs, with travel-related stocks getting hit by soaring infections across the continent and last-minute changes to travel rules. The U.S. government on Monday issued the highest warning against travel to Britain.
Among other stocks, Norwegian telecoms operator Telenor rose 2.3% after it raised its full-year revenue outlook. French spirits group Remy Cointreau inched down 2.2% even as its first-quarter organic sales more than doubled after bars and restaurants reopened in Europe.
Analysts expect to profit at STOXX 600 companies to jump 108.6% in the second quarter versus a year ago, according to Refinitiv IBES estimates, as COVID-19 restrictions eased across Europe. Sweden's AB Volvo fell 3.5% as it warned of further production disruptions and stoppages this year due to chip shortages.
Home appliances maker Electrolux tumbled 9.4% after it reported a lower-than-expected second-quarter operating profit and warned global supply chain woes would worsen in the coming months.
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