UPDATE 2-European shares rise on recovery hopes, LVMH leads
* LVMH, Airbus rise on upbeat outlook from research firms
* Fresenius tumbles on issuing profit warning
* Basic materials dip as copper , iron ore price decline
* BP slides on first loss in a decade (Updates to close)
By Shreyashi Sanyal and Susan Mathew
Feb 2 (Reuters) - European shares rose on Tuesday on hopes of a faster economic recovery, with some upbeat economic growth data and encouraging outlook on big names such as Airbus and LVMH putting a pan-regional index on course to erase last week's hefty losses.
Europe's STOXX 600 index .STOXX closed higher for a second straight session, up 1.3% on broad-based gains after losing over 3% last week on concerns around the slow rollout of COVID-19 vaccines in the euro zone. data on Tuesday showed the euro zone economy contracted by less than expected in the fourth quarter of 2020 as large economies Germany and Spain still managed slight expansions. with lockdowns extended well into the first quarter, another technical recession is in the making," said Bert Colijn, senior euro zone economist at ING.
Luxury brand owners LVMH LVMH.PA and Kering PRTP.PA jumped 3.4% and 1% respectively after brokerage Berenberg recommended the stocks, noting long-term structural drivers of demand for luxury products remain intact. Airbus AIR.PA rose after a Morgan Stanley (NYSE: MS ) upgrade on overlooked production increases. of strong results from Amazon AMZN.O and Google-parent Alphabet GOOGL.O and hopes of a $1.9 trillion U.S. COVID-19 relief package in the United States also kept sentiment buoyed. device maker Coloplast COLOb.CO and Sweden's Indutrade INDT.ST were the top gainers on STOXX 600 on topping quarterly earnings. materials .SXPP was the only in the red as copper and iron ore prices tanked, while gains in the oil sector were limited by a 4.5% slide in BP BP.L after it reported its first loss in a decade. IRONORE/ MET/L
London's blue-chip FTSE 100 .FTSE gained the least among regional peers, weighed upon by reports that the UK variant of the coronavirus has developed a new, concerning mutation that could reduce the efficacy of vaccines. .L
Fresenius Medical Care FMEG.DE tumbled 10.3% after the world's No.1 kidney dialysis firm warned its adjusted net profit was likely to drop this year. FRENZY PAUSES
Silver prices dropped on Tuesday, halting a rally to near eight-year highs in the previous session that was the latest move in two weeks of turmoil on financial markets fuelled by a pack of Reddit-centered individual investors. pause in a social media driven rally that drove up prices of the commodity as well as certain stocks including GameStop Corp (NYSE: GME ) GME.N has helped calm worries about potential losses incurred by certain hedge funds causing disruption to markets as a whole.
Finnish shares of Nokia NOKIA.HE , also caught up in the frenzy, slid 5.3%.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or