UPDATE 2-European shares rise for second day as commodity, construction stocks gain

  • Reuters
  • Stock Market News
UPDATE 2-European shares rise for second day as commodity, construction stocks gain
Credit: © Reuters.

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* St Gobain soars after upbeat Q4 forecast

* Miners, oil stocks gain on U.S. stimulus hope

* DeliveryHero slips after new share issuance (Updates prices throughout, adds comments)

By Amal S and Shreyashi Sanyal

Jan 7 (Reuters) - European stocks climbed for a second straight session on Thursday as construction stocks gained on upbeat sales forecast from Saint Gobain and commodity-linked shares rose on hopes of larger U.S. stimulus after Democrats won Senate control.

The pan-European STOXX 600 index .STOXX advanced 0.5% to near February 2020 highs, while London's blue-chip FTSE 100 .FTSE gained 0.2% and Germany's DAX index .GDAXI was up 0.6%.

Construction & material stocks .SXOP were the top gainers, led by a 2.3% rise in France's Saint Gobain SGOB.PA after it said fourth-quarter results would significantly exceed expectations. economically sensitive sectors such as mining .SXPP , energy .SX7E and industrials extended their rally on the prospects of more U.S. stimulus after Democrats won control of the Senate. a Blue Wave could pave the way for stricter regulations and tax hikes, investors try to see it from a positive side... and further stimulus measures are likely to follow and without a months-long stalemate," said Milan Cutkovic, market analyst at Axi.

Gains in Swedish industrial companies Atlas Copco ATCOa.ST , Sandvik SAND.ST and Volvo VOVLb.ST drove Stockholm stocks .OMXSPI to all-time highs.

"We highlight that Basic Resources, Construction & Materials have underperformed since the beginning of December and, given their sensitivity to fiscal policy in general through infrastructure investment, they have catch up potential," Unicredit (MI: CRDI ) analysts said in a note.

European wind turbine makers Vestas VWS.CO , Orsted ORSTED.CO and Siemens Gamesa SGREN.MC all extended gains from the previous session.

Renewable stocks are widely considered as winners of a Joe Biden administration, given the U.S. president-elect's proposed $2 trillion climate plan.

Sentiment was also boosted by European approval for a second COVID-19 vaccine developed by Moderna Inc MRNA.O . demand for German-made goods defied expectations, rising 2.3% in November, the latest in a string of data points showing the Europe's largest economy being unexpectedly resilient in the face of the pandemic. other movers, LafargeHolcim LHN.S rose 2.4% after the world's biggest cement maker said it would buy Firestone Building Products from Bridgestone Americas in a deal worth $3.4 billon. Hero DHER.DE slipped 2.9% after the German food delivery firm said it raised around 1.2 billion euros ($1.48 billion) by issuing new shares to fund growth. & Butlers MAB.L dropped 3.2% after the British pub operator said it was exploring an equity capital raise as a new national lockdown shut its sites across England.

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