European stocks rebound on recovery optimism

LONDON: European stock markets rebounded Thursday after a record performance on Wall Street, as growing economic optimism topped concerns over the rapidly spreading Delta Covid variant.

The price of New York crude oil spiked above $75 for the first time since late 2018, as OPEC and other major producers prepare for a key meeting at which they are expected to lift output in the face of resurgent demand.

London equities gained 0.6 percent in midday deals, also after Japanese car maker Nissan announced a £1.0-billion ($1.4-billion, 1.2-billion-euro) investment in a new UK electric car battery factory.

Both Frankfurt and Paris stocks each climbed by 0.2 percent in early afternoon eurozone trade on upbeat unemployment and manufacturing data.

"European stocks are charging higher, boosted by optimism surrounding the economic recovery in the region," said OANDA analyst Sophie Griffiths.

"Data revealed that eurozone manufacturing activity expanded at its fastest pace on record in June as the economy continued to recover from the third wave of Covid.

"The region's recovery has clearly ramped up a gear, despite price pressure also increasing."

However, the Covid-19 crisis continues to cast a shadow over trading floors.

The virus is seeing sharp spikes across the world, with Australia shutting down four major cities and numerous countries imposing tough restrictions including South Africa, parts of Asia, South America and Europe.

Asian indices struggled Thursday with investors keeping a close eye on the Delta variant, which has raised concerns about the strength of global economic recovery.

Upcoming US jobs data is also in view, with a forecast-beating jump on private employment lifting hopes for a strong reading that will solidify optimism about growth in the world's top economy.

Traders digested data showing private firms added 692,000 jobs in June, a big drop from the month before but well above expectations. The report added to a recent run of figures showing strong consumer confidence, rising home prices and positive corporate earnings.

The main event this week comes Friday, with the release of government non-farm payrolls, which will provide a clearer snapshot of the economic progress and could play a role in Fed deliberations on monetary policy.

Later on Thursday, the OPEC+ group of oil-producing countries are to meet Thursday and are expected to agree to boost output in August.

The cost of crude oil has surged back to levels last seen in October 2018, which would normally support arguments in favour of boosting production.

India, the world's third-largest consumer of crude, has urged OPEC+ to phase out its current regime of cuts and allow prices to fall as inflation pressure threatens to hobble economic recovery.

Key figures at 1045 GMT London - FTSE 100: UP 0.6 percent at 7,076.96 points

Frankfurt - DAX 30: UP 0.2 percent at 15,554.30

Paris - CAC 40: UP 0.2 percent at 6,525.10

EURO STOXX 50: UP 0.1 percent at 4,069.54

Tokyo - Nikkei 225: DOWN 0.3 percent at 28,707.04 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,588.78 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

New York - Dow: UP 0.6 percent at 34,502.51 (close)

Euro/dollar: UP at $1.1867 from $1.1858 at 2100 GMT

Pound/dollar: DOWN at $1.3774 from $1.3831

Euro/pound: UP at 86.12 pence from 85.74 pence

Dollar/yen: UP at 111.50 yen from 111.11 yen

Brent North Sea crude: UP 2.0 percent at $76.08 per barrel

West Texas Intermediate: UP 2.2 percent at $75.07 per barrel