Wednesday, April 21, 2021
No menu items!
HomeBanksBanks and autos drive gains for European stocks as U.S. equity futures...

Banks and autos drive gains for European stocks as U.S. equity futures also gain

European stocks moved higher on Wednesday, with banks and automobile makers rising, and U.K. stocks higher ahead of the spring budget message. U.S. equity futures also indicated a stronger start for Wall Street.

The Stoxx Europe 600
SXXP,
+0.60%

rose 0.7% to 415.99, poised for a third straight positive session, after closing modestly higher on Tuesday. Regional gains were led by the FTSE 100 index
UKX,
+1.12%
,
which climbed 1.3% ahead of the U.K. budget announcement.

The German DAX
DAX,
+0.92%

rose 1%, and the French CAC
PX1,
+0.85%

gained 0.9%. The pound
GBPUSD,
+0.19%

and euro
EURUSD,
+0.03%

were flat.

U.S. stock futures
ES00,
+0.66%

YM00,
+0.75%

NQ00,
+0.74%

indicated a rebound ahead for Wall Street, after technology stocks led the way south for markets on Tuesday. Asian markets also closed higher, after getting spooked by a top China banking regulator warning of risks from the country’s property market and bubbles in developed equities.

In Europe, investors will be watching for a lockdown easing strategy to come from German Chancellor Angela Merkel, as pressure builds to reopen the region’s biggest economy. Merkel is expected to agree to gradually relax measures, according to a draft plan viewed by Reuters.

Auto makers were among Europe’s biggest gainers. Renault
RNO,
+4.96%

shares gained 4%, after the French auto group was upgraded to buy from neutral at UBS. Shares of Volkswagen
VOW,
+3.89%

and Porsche
PAH3,
+3.74%

were also up 4% each.

And newly combined auto maker Stellantis
STLA,
+0.71%

— a product of the merger of Fiat Chrysler Automobiles and Peugeot — said it expects an adjusted operating income margin of between 5.5% and 7.5% for 2021. Shares rose over 2%.

Banks were also climbing, with heavily-weighted HSBC
HSBC,
+0.85%

and France’s BNP Paribas
BNP,
+2.04%

up over 2% each.

The home building and hospitality sectors were leading gains in London, on hopes for more help from Chancellor of the Exchequer Rishi Sunak when he delivers his budget address around midday in London. Sky News reported that he is expected to announce an extension of the furlough plan, which will pay 80% of workers’ wages until the end of September.

Shares of pub owner Whitbread
WTB,
+5.05%

climbed 5% and homebuilder Persimmon
PSN,
+4.39%

climbed 4%.

Persimmon said pretax profit and revenue fell in 2020, due to the COVID-19 pandemic, but that recovery in the second half has continued into 2021.

Shares of Avast
AVST,
-3.53%

fell over 2%, even after the cybersecurity company reported higher…

Source link

banknewsnowhttps://www.banknewsnow.com
Founder and CEO of the premier banking news informational website for the banking/financial industry, and applicants seeking careers exclusively in the finance field.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments

    Skip to toolbar