On Tuesday, a slew of European stock indices had wrapped up the day with a broad-based rally, mostly buoyed up by a strident upsurge of travel and leisure stocks over hopes of a revival of the tourism industry as a number of eurozone countries had been reopening their economies following month-long lockdowns.
In point of fact, coupled with a gradual reopening of the economies that appeared to have ramped up the bloc’s battered tourism sector, an Ifo survey showing German exporters had rebounded in May following the caustic catastrophes of March and April, had led to the day’s outpouring rallies.
Citing statistics, as the European shares had finished the market broadly higher with Madrid’s IBEX 35 leading the troops, London’s FTSE 100 rose by 1.24 per cent to 6,067.76, Frankfurt’s DAX added 1.00 per cent to 11,504.65, while the French CAC 40 climbed 1.46 per cent to 4,606.24.
Elsewhere in the Europe, Madrid’s IBEX 35 jumped 2.15 per cent to 7,003.90, while Italy’s benchmark FTSE MIB was nudged 1.50 per cent higher to round off the session at 17,806.46.
European shares hit highest level since March 9 as travel stocks bounce back
Apart from that, among the travel and leisure stocks, the British Airways owner IAG skyrocketed 22.5 per cent and the Frankfurt-listed Lufthansa extended gains following a €9 billion bailout package, while the budget carrier easyJet Plc.
and the London-listed travel group TUI had mushroomed 19 per cent and 52 per cent respectively. In tandem, as the Europe’s regional pan-European STOXX 600 surged 1.1 per cent to wrap up the day at its highest level since March 9th, citing a through-and-through optimism regarding the European equities over the coming months, an analyst of the US lender JPMorgan, Cazenove said to the clients on session closure, “We believe that the pro-cyclical market bias that we called for will have some legs, and build on itself in the next weeks.
It should last while PMIs are normalizing. The up-move in Eurozone PMI that we saw last week is likely to extend in the next reading, for June. ”