European Shares Rise On German Data, Vaccine Hopes

(RTTNews) - European stocks rose on Tuesday, with impressive German data, positive news on the coronavirus front and signs of progress in U.S.-China trade negotiations boosting sentiment.

German GDP fell 9.7 percent sequentially in the second quarter after shrinking 2 percent in the first quarter, data from Destatits showed today. The rate was revised down from -10.1 percent estimated on July 30.

Nonetheless, the quarterly decline was much larger than during the financial and economic crisis of 2008/2009 and the sharpest since quarterly GDP calculations started in 1970.

Meanwhile, German business confidence improved in August, survey data from ifo Institute revealed. The business confidence index rose to 92.6 in August from 90.4 in July. This was the fourth consecutive rise and above economists' forecast of 92.2.

U.S. biotechnology company Moderna, Inc. said it has concluded advanced exploratory talks to provide 80 million doses of its experimental coronavirus shot to the European Union.

The Office of the U.S. Trade Representative said in a statement that the U.S. and China are seeing progress and are committed to taking steps to ensure the success of their Phase 1 trade deal.

The pan-European Stoxx Europe 600 index rose 0.4 percent to 372.41 after climbing 1.6 percent in the previous session.

The German DAX and France's CAC 40 index gained around 0.6 percent, while the U.K.'s FTSE 100 was up 0.1 percent.

EssilorLuxottica lost 1 percent. The company said the Dutch District Court has dismissed its demands for disclosure of information from both HAL and GrandVision on how GrandVision conducted business during Covid-19.

LVMH rose over 1 percent. Reuters reported, citing an unnamed source that the French luxury goods giant and U.S. jeweler Tiffany have extended by three months the deadline to complete their $16.2 billion deal.

Industrial software provider Aveva Group surged 4 percent after it announced a deal to buy SoftBank-backed peer OSIsoft for an enterprise value of $5 billion.

Marine service provider James Fisher & Sons slumped 6.2 percent after reporting weak first-half results and cutting its interim dividend.

Furniture retailer DFS Furniture soared nearly 16 percent. The company said its performance over the last six weeks was significantly above its initial expectations.

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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