Automakers, strong earnings’ mount European shares to two-week high

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Automakers, strong earnings’ mount European shares to two-week high

On Tuesday, the 23rd of July, a majority of European bourses had winded down the day in fine fettles, while a strong upsurge of automotive alongside upbeat earnings’ reports of top European lenders likes of Spain’s Santander had heaved up regional pan-European STOXX 600 index to a two-week high.

Meanwhile, despite a bullish breeze winding through European airs, gains of key European bourses such as Madrid and London were capped by political cataclysms. Nonetheless, a robust rally of automakers’ index .SXAP, which posted an upsurge of 3.8 percent on Tuesday’s (July 23rd) market closure, marking its strongest performance since January this year, had lifted the regional Pan-European STOXX 600 to its best level since July 4th.

While major European automakers likes of Germany’s Continental rose 6.3 percent despite a profit warning yesterday (July 22nd) and its arch-rival Hella added 6.8 percent alongside French auto part supplier Faurecia, which torrented more than 11 percent despite a decline in productions, analysts had been quoted saying that the reveal of EU trade chief Malmstrom’s 35-billion-euro hit-list on US imports as a retaliatory measure for US tariff hike on EU-manufactured autos had reinforced investors’ belief on European automotive.

Quoting statistics, on Tuesday (July 23rd) market round off, London’s FTSE 100 added 0.56 percent, Germany’s trade-sensitive DAX rocketed 1.64 percent and French CAC 40 rose 0.92 percent, while Italy’s FTSE MIB soared 1.01 percent on Tuesday’s market wind down.