Markets

European Shares Rebound On Vaccine Progress

(RTTNews) - European shares rebounded on Wednesday as investors cheered positive updates on a potential Covid-19 vaccine and pinned hopes on EU stimulus.

Biotech firm Moderna said its experimental vaccine for Covid-19, mRNA-1273, showed it was safe and produced strong immune responses in all 45 patients in an ongoing early-stage human trial.

EU leaders are set to meet later this week for an extraordinary summit and it is expected that they will agree on a recovery fund of 750 billion euros for pandemic-hammered economies.

The European Central Bank meeting is coming up on Thursday with little change expected.

The pan European Stoxx 600 rose 0.8 percent to 370.47 after declining 0.8 percent on Tuesday. The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were up between 0.8 percent and 1.1 percent.

Swedish telecom operator Tele2 AB rallied 3.7 percent after reaffirming its 2020 earnings outlook and reinstating extra dividend.

Atlantia SpA soared 21 percent as Italy's government moved to resolve a long-running dispute linked to a 2018 bridge collapse.

Swiss watch and jewelry maker Swatch Group surged 4 percent. The company cut 6.5 percent of its jobs and trimmed its retail network, due to loss caused by the coronavirus pandemic.

The company also announced the end of its 22-year-old contract to sell Calvin Klein watches and said it expects a positive operating result for the full year.

Travel & leisure stocks were moving higher, with Lufthansa, TUI, EasyJet and International Consolidated Airlines Group climbing 2-4 percent.

Medical and safety technology provider Draegerwerk AG & Co. KGaA soared as much as 11 percent. The company reported that its preliminary net sales for the second quarter increased by 26.5 percent (net of currency effects) to 788.4 million euros from last year.

Considering the high demand due to the Covid-19 pandemic, the company expects full year net sales and EBIT to be considerably above both the prior year and the original guidance.

Miners Antofagasta and Glencore rose 2-3 percent on the back of economic recovery optimism.

Fashion brand Burberry slumped 7.3 percent after it warned second-quarter revenue would be materially hit by the coronavirus pandemic.

GlaxoSmithKline rose 1.6 percent after a U.S. health panel voted in favor of its blood cancer drug.

On the economic front, official data showed that British inflation accelerated unexpectedly in June.

U.K. consumer price inflation rose to 0.6 percent from 0.5 percent in May, data from the Office for National Statistics showed. The rate was expected to slow to 0.4 percent.

Confounding expectations for a decline of 0.2 percent, consumer prices gained 0.1 percent after remaining unchanged in May.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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