European stocks extend record rally after Xi-Biden talks, Prosus, Kering boost

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(Businesshala) – Some European stock indexes extended their record rally on Tuesday, boosted by shares of Dutch technology investor Prosus and French luxury conglomerate Kering and lifted by optimism in easing US-China tensions.

The German stock price index DAX graph is pictured on November 16, 2021 at the stock exchange in Frankfurt, Germany. REUTERS/Employees

The pan-European STOXX 600 closed 0.2% higher, while Germany’s DAX, France’s CAC 40, and euro zone stocks all hit new highs.

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Prosus NV rose 4.2% after forecasting higher profits for the first half of 2022 as it raised $12.3 billion from selling part of its stake in Tencent in April.

Kering was at the top of the CAC 40, with its top brand Gucci saying 2021 revenues are expected to be at or above their pre-pandemic levels, up 4.4%. HSBC upgraded the stock to “buy”.

Markets turned positive throughout the day, beginning with a crucial meeting between US President Joe Biden and Chinese leader Xi Jinping, which was seen as evidence of improving ties. [MKTS/GLOB]

The data showed that the euro area gross domestic product (GDP) grew by 2.2% quarter-on-quarter in the July-September period, as expected.

“The good growth in euro-zone GDP in Q3 means the recovery is almost complete for most of the region,” said Jessica Hinds, Europe’s economist at Capital Economics.

The STOXX 600 surges to new peaks in November as an encouraging earnings season indicates from the European Central Bank and improving economic data will keep investors from past inflationary pressures as well as a spike in COVID-19 cases across the continent. It has helped to see a new boom.

ECB President Christine Lagarde reiterated her push against market bets for tighter monetary policy on Monday.

“We are seeing record highs, but only incremental moves, which are a sign of where we stand now,” said Craig Erlam, senior market analyst at OANDA.

“Central banks are pushing for as long as they can buy time and see if economies are in a good position to raise rates, at which point they can safely begin to change their language. It can support the markets. Used to be. “

Vodafone had witnessed a 0.5% jump in the telecom sector after the company removed its annual free cash flow outlook.

Portuguese food retailer Jeronimo Martins fell 11.1% after Astec, a unit of the Herema Group, sold its entire 5% stake in the company.

Reporting by Anisha Sarkar and Shreyashi Sanyal in Bengaluru; Editing by Uttaresh V and Aditya Soni

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