On Tuesday, a basket of European bourses had hit a roughly three-week peak, mostly muscled up by the gains of retail and mining stocks, as a robust industrial output data in China had buoyed up mining and luxury stocks, while the Swedish fashion retailer H&M skyrocketed more than 10 per cent following reveal of a sharp turnaround of its quarterly profit.
In point of fact, Tuesday’s rise of a majority of European stock exchanges had been largely prompted by an upbeat China data alongside a rise in the Swedish luxury fashion retailer’s quarterly profit, while an unprecedented rise in ZEW investors’ sentiment survey had added to further bullish wing into the investors’ optimism, propping up hopes of a quicker-than-anticipated economic recovery from the pandemic-led fiscal slump.
European shares gain on upbeat mining, retail stocks
Apart from that, as the regional pan-European STOXX 600 had hit a nearly three-week peak, the gains were mostly galvanized by a 10.8 per cent rise of the world’s No.
1 fashion retailer H&M which in effect had led to a 2.3 per cent rise in the retail shares’ index, while mining stocks wrapped up the day 1.7 per cent higher after China Govt. data had revealed earlier in the day that the world’s top metal consumer’s industrial output had surged by the most in eight months in August and China’s retail sales had surged for the first time this year.
On tops of that, China-export oriented luxury stocks likes of French luxury goods conglomerate LVMH alongside Hermes and Kering had also reported robust gains which in turn had fleshed up the STOXX 600 further. Citing statisitcs, on the day’s European market closing bell, major bourses had finished broadly higher with London’s FTSE 100 turbocharging the momentum as the French CAC 40 rose 0.32 per cent to 5,067.93, Frankfurt’s DAX added 0.18 per cent to 13,217.67, while London’s FTSE surged 1.32 per cent to 6,105.54, in part aided by a weaker British pound.
Elsewhere in the Europe, Italy’s FTSE MIB climbed 0.82 per cent to 19.956.95, while Madrid’s benchmark IBEX 35 had rounded off the day 1.22 per cent higher to 7,036.00. Meanwhile, referring to a raft of upbeat fiscal data showing promising signs of a rebound in business activities, an economist at Berenberg, Florian Hense said on the day’s European market wind down, “The hard data – retail sales, industrial production, exports – suggest activity is largely rebounding as we expect, in a tick-shape manner.
After initially rebounding strongly, the trajectory of the recovery has flattened, but continues firmly during Q3. ”