European stocks rise on backing from Wall Street, travel stocks jump 3%
(Reuters) – European stocks rose on Thursday as a rebound in travel stocks and overnight strength on Wall Street helped offset concerns about the slowing Chinese economy that led to the slowdown in miners .
The pan-European STOXX 600 index rose 0.7%, rebounding from a six-week closing low reached in the previous session.
Travel and leisure jumped 3.1% to break a four-day losing streak, while automakers rose 0.6% to a one-month high.
Europe’s largest low-cost airline, Ryanair, jumped 5.6% after raising its long-term traffic forecast. Rivals easyJet, British Airways owner IAG, and Wizz Air gained nearly 4% each.
As Asian stocks came under pressure from concerns about the Chinese economy and the fallout from financial woes from debt-ridden developer China Evergrande Group, European stocks were on a solid footing as good US data on Wednesday bolstered the market. optimism about a recovery in the world’s largest economy. [.SS] [.N]
“Good business news and an optimistic report from the US manufacturing sector outweigh lingering concerns about China dragging down mining stocks and other companies linked to the Chinese economy,” Russ said. Mold, director of investments at AJ Bell.
Miners such as Rio Tinto, Anglo American and BHP Group were among the main drag as metal prices fell after China reiterated its intention to release more metals from its reserves. [MET/L]
German automotive supplier Continental AG fell 2.5% to the low of the STOXX 600 after the split of its Vitesco unit.
The utilities index edged up 0.1% after falling nearly 3% on Wednesday. Spain adopted emergency measures earlier this week to reduce energy bills, raising concerns about the impact on utility profits.
Spaniards Endesa and Iberdrola extended their losses for a third day to fall to their lowest since 2020.
Italy is also considering introducing short-term measures to offset the expected rise in retail electricity prices, a minister said in a radio interview.
“Equities in the sector suffer from the risks of regulatory intervention, as in Spain, and it will be necessary to see how other governments in Europe intervene,” Equita analysts said.
“The current prices do not reflect the high prices for energy and gas.”
Graphic: European utilities under pressure from regulatory intervention – https://fingfx.thomsonreuters.com/gfx/mkt/akpezqawevr/Pasted%20image%201631779866469.png
Paris Match magazine owner Lagardère jumped 20.3% after media group Vivendi announced it would buy another stake in the company, paving the way for a full takeover.
British fashion brand Superdry jumped 14% after forecasting a recovery in sales for the year 2022.
(Reporting by Sruthi Shankar in Bangalore; editing by Shounak Dasgupta)