AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)
Markets

European stocks flat despite rise in cyclicals

  • The regional STOXX 600 index closed up 0.05pc after a mixed session, while Germany's DAX rose 0.1pc, France's CAC inched 0.2pc lower and Britain's FTSE 100 fell 0.7pc.
Published January 12, 2021 Updated January 13, 2021

European stocks closed flat on Tuesday, with economically sensitive sectors including banks, automakers and oil supporting markets across the continent.

The regional STOXX 600 index closed up 0.05pc after a mixed session, while Germany's DAX rose 0.1pc, France's CAC inched 0.2pc lower and Britain's FTSE 100 fell 0.7pc.

Investors are awaiting the start of the U.S. earnings season this week as well as clarity on fiscal spending plans under incoming U.S. President Joe Biden, who takes office on Jan. 20.

In Europe, automakers jumped 1.7pc to lead gains after Renault, BMW and VW reported 2020 sales.

Their U.S. carmaking rivals also got a boost after General Motors announced its entry into the growing electric delivery vehicle business.

Other cyclicals such as banks, travel and leisure and oil and gas extended last week's rally on hopes that a larger U.S. stimulus under the incoming Biden administration will spur faster economic recovery.

Oil majors BP and Royal Dutch Shell gained close to 2pc as crude prices hit an 11-month high on tighter supply and expectations for a drop in U.S. inventories.

Still, losses in defensive sectors such as healthcare, utilities and consumer staples checked gains in most markets.

"Investors are still wondering where the next big catalyst for further upside will come from, and are painfully aware that the COVID-19 crisis remains untamed despite the introduction of vaccination programmes," Chris Beauchamp, chief market analyst at IG wrote in a client note.

Britain's exporter-heavy FTSE 100 underperformed other European markets, hit by a stronger pound and a surge in new COVID-19 cases.

Companies listed on Europe's STOXX 600 are expected to report a 26.3pc drop in fourth-quarter earnings, data from Refinitiv I/B/E/S shows, as restrictions to control soaring coronavirus cases slowed an economic recovery.

That comes ahead of a clear improvement predicted for the first two quarters of 2021, when earnings are set to rise 40.4pc and 75.1pc respectively.

Maersk rose 3.4pc after brokerage Berenberg upgraded the Danish shipping company's shares to "buy", saying earnings momentum driven by freight prices could see it run higher.

Swiss online pharmacy chain Zur Rose hit a record high, surging almost 15pc to the top of STOXX 600, after BofA Global Research started coverage with "buy" rating.

Comments

Comments are closed.