On Tuesday, a gauge of European stock indices rounded off the day in a fairly upbeat texture and the regional pan-European STOXX 600 had narrowed its gap with a three-month peak over optimism regarding a post-pandemic recovery, while the German stocks had led the rally on Tuesday following a jump of Lufthansa shares.
On top of that, as investors’ optimisms were supported further following a decent upward spiral in the bloc’s factory activity last month, that crawled up from a record low of 33.2 to 39.0 last month, auto stocks had gathered momentum and lifted the export-oriented European stocks to their three-month peak.
Besides, the regional pan-European STOXX 600 gained as much as 1 per cent to hit its highest level since March 9th, while Lufthansa climbed 7.5 per cent after the Europe’s second-largest airline’s supervisory board had approved a €9 billion bailout package from the German Government in exchange for a 20 per cent stake in the company, which the German Government of Chancellor Angela Merkel said would be selling off by 2023, propelling the Frankfurt’s DAX 2.6 per cent higher to breach their highest level since March 5.
Automakers lift Europe as Germany leads the tally
Aside from that, as investors in Germany had returned into their trading desk after a long weekend due to a market closure on Monday, German carmakers such as Daimler AG and BMW surged between 4.5 per cent and 7.7 per cent following reveal of a media headline over the weekend that the bloc’s largest economy’s Ministry of Economics had already proposed a €5 billion buyers’ bonus scheme in order to flesh up car sales.
Europe hovers near 3-month peak, but Sino-US spat, nationwide protest in the US keep a lid on gains Citing statistics, on the day’s European market closure, a raft of European stock indices had ended up the day broadly higher as beforementioned with Frankfurt-listed shares leading the rally, while London’s FTSE 100 gained 0.87 per cent to 6,220.14, French CAC 40 climbed 2.02 per cent to 4,858.97 and Frankfurt’s DAX torrented 3.75 per cent to 12,021.28.
Elsewhere in the Europe, Madrid’s IBEX 35 winded down the day 2.59 per cent higher to 7,408.10, while the Italy’s benchmark FTSE MIB rose by 1.55 per cent to 18,955.65. Meanwhile, although gains were across the board in Europe on Tuesday, several analysts were quoted saying on the day’s market round off that the torrential dives in the European markets were largely tempered by an ongoing Sino-US spat alongside a nationwide protest in the United States over the death of a black man who was injured by a white police officer at some part of an unofficial interrogation as seen in a video footage.