AMSTERDAM/LONDON: European stocks marked their best day in nearly two months on Wednesday, recovering from a sharp sell-off in the previous session as resource stocks hit a 10-year high, while data showed euro zone business activity picked up in April.
The pan-European STOXX 600 index ended 1.8% higher, wiping out almost all of its 1.4% loss on Tuesday, when concerns over policy tightening in the United States had rattled high-value technology stocks.
European tech stocks rose 2.7% after a 3.7% plunge in the previous session.
Europe’s basic resources index jumped 4.7% to a 10-year peak, with big London-listed miners leading gains as copper prices hit decade highs on optimism about a speedy recovery in the global economy. The index also marked its best day in nearly a year.
Oil and gas stocks surged 3.2% in their best day since mid-February, as expectations of recovering demand benefited oil prices, while the construction and materials index jumped 2.9% to a record high.
European earnings are now expected to surge 83.1% in the first quarter, according to Refinitiv IBES data, up from last week’s forecast of 71.3% growth.
German cooking appliances maker Rational jumped 12.7% to the top of the STOXX 600, after it posted better-than-expected first-quarter results.
Danish shipping company Maersk was up 6.9% after it said it was expecting an “exceptionally strong” performance in the first quarter to continue for the rest of the year.
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