European Stocks Close On Buoyant Note On Vaccine News, Stimulus Hopes
(RTTNews) - European stocks ended on a buoyant note on Wednesday, as investors indulged in some hectic buying across the board, thanks to positive news on the coronavirus vaccine front.
Optimism about a massive stimulus announcement from the European Union too contributed significantly to the positive mood in the markets.
Close on the heels of recent positive developments on coronavirus treatment and vaccine fronts, U.S. biotech firm Moderna has announced that its experimental vaccine mRNA-1273 for Covid-19 was safe and produced strong immune responses in all 45 patients in an ongoing early-stage human trial. An interim analysis of the open-label Phase 1 study of the vaccine candidate was published in the New England Journal of Medicine.
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 moved up 1.76%. The U.K.'s FTSE 100 surged up 1.83%, Germany's DAX advanced 1.84% and France's CAC 40 climbed up 2.03%, while Switzerland's SMI gained 1.95%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Ireland, Netherlands, Norway, Poland, Spain and Sweden closed with sharp to moderate gains.
Finland, Iceland and Russia closed marginally higher, while Portugal and Turkey ended weak.
In economic news, UK consumer price inflation accelerated unexpectedly in June, data from the Office for National Statistics showed. Consumer price inflation rose to 0.6% from 0.5% in May. The rate was expected to slow to 0.4%.
Confounding expectations for a decline of 0.2%, consumer prices gained 0.1% on a monthly basis after remaining unchanged in May. Excluding energy, food, alcoholic beverages and tobacco, core inflation advanced to 1.4% from 1.2% in May. The rate was forecast to remain unchanged at 1.2%.
In the U.K. market, IAG shares soared nearly 11%. Carnival spurted 10.4% and Compass Group gained 7.7%. Meggitt, Whitbread, Ocado Group, Easyjet, TUI, Rolls-Royce Holdings, 3i Group, Astrazeneca, JD Sports and Hikma Pharmaceutical moved up 5 to 7%.
Coca-Cola, BAE Systems, Fresnillo, Smiths, Auto Trader Group, Aveva, Ashtead Group, Associated British Foods and Ferguson also rose sharply.
Burberry Group shares tumbled about 5% after the company reported a sharp 45% drop in quarterly earnings.
In France, Accor and Safran both ended higher by nearly 7%. Airbus, Sodexo, Renault, Schneider Electric, Vinci, Kering, STMicroElectronics, Societe Generale, BNP Paribas, Publicis Groupe, ArcelorMittal, Veolia, Bouygues and Sanofi gained 2 to 5%.
In the German market, Lufthansa rallied more than 8%. Thyssenkrupp, Linde, Merck, Adidas, Fresenius, HeidelbergCement, Volkswagen, SAP and Siemens gained 2 to 4.3%. Infineon Technologies, Daimler and Deutsche Bank also ended with strong gains.
Swiss watch and jewelry maker Swatch Group moved up sharply after the company cut 6.5% of its jobs and trimmed its retail network, due to loss caused by the coronavirus pandemic.
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