Rebound in European equities with luxury and commodities – 06/06/2022 at 11:20 am


EUROPEAN STOCK EXCHANGES OPEN UP

PARIS (Reuters) – The main European stock markets rose at the start of the session on Monday thanks to the compartments of commodities and luxury, in the wake of the impetus given by Tokyo and futures contracts on Wall Street, in a generally calm market in reason for Pentecost.

In Paris, the CAC 40 index gained 1.06% to 6,554.19 points around 8:20 GMT. In Frankfurt, the Dax takes 0.85%. In London, the FTSE advanced 1.27% after four days of closure linked to the celebrations of the Platinum Jubilee of Queen Elizabeth II.

The resumption of the session in London could however be turbulent, with British Prime Minister Boris Johnson facing a vote of confidence from his party’s MPs later today due to “Partygate”.

The EuroStoxx 50 index for the euro zone advanced by 1.19%, the FTSEurofirst 300 by 0.87% and the Stoxx 600 by 0.81%.

While inflation and interest rates remain dominant factors, investors await Thursday the meeting of the Governing Council of the European Central Bank (ECB) and Friday the statistics of consumer prices in the United States for the month of may. No major indicator is on the agenda.

In Tokyo, the Nikkei index ended up 0.56% at 27,915.89 points, a two-month peak, driven by the energy compartment and the rebound in technology stocks like Nintendo.

On Wall Street, where the session ended Friday with a decline after the publication of data on employment in the United States which dimmed the hope that the Federal Reserve (Fed) will pause in its monetary tightening, index futures point to an opening up Monday from 0.5% to 0.9%, thanks in particular to the recovery of major technology stocks.

In Europe, apart from healthcare (-0.11%), all the other major sectors on the rating are in the green, basic resources (+1.09%), energy (+1.09%) and consumption (+0.80%) being in the lead.

The positive trend in mining and luxury stocks is linked to new measures to ease health restrictions in Beijing and Shanghai, which could boost Chinese demand.

Kering, LVMH, Richemont advance from 0.8% to 1%, while TotalEnergies, Eni and BP take from 1.7% to 2.8%.

In other sectors, Eat Takeaway.com jumped 4.33% after information from the Times that the co-founder of Grubhub, Matt Maloney, is studying a takeover of the American subsidiary of the Dutch specialist in meal delivery.

BAE Systems, up 1.56%, benefited from the raising of its price target by Jefferies, the intermediary believing that the British defense group will launch a new share buyback program when it publishes its results for first semester.

(Written by Claude Chendjou, edited by Kate Entringer)



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