European stocks stabilise after sell-off in previous session

European stocks stabilised on Tuesday after enduring their worst sell-off this year in the previous session on the back of fears that the spread of the Delta variant of Covid-19 will keep the global economy derailed.

The recovery in equity values was helped by a handful of positive corporate earnings and production updates from mining stocks.


The Iseq climbed just over 1 per cent as stocks across Europe edged back into positive territory after a torrid start to the week.

Bank of Ireland added 2 per cent to €4.05, while AIB slipped 0.1 per cent to €1.82 on a day when it announced a branch closure plan amid a further shift to online banking.

After a loosening of travel restrictions and an upbeat outlook statement from rival EasyJet, Ryanair advanced 2 per cent to close at €14.95. Cement-maker CRH, the biggest stock on the index, also enjoyed a good day, rising 1.9 per cent to €40.58.

Packaging group Smurfit Kappa added 0.9 per cent to €44.90, while Cairn Homes rose 2 per cent to €1.03 in a session where many stocks posted gains on relatively low trading volumes.


Miners and bank stocks helped the FTSE 100 rebound 0.5 per cent, while the domestically-focused mid-cap index rose 0.8 per cent.

Global miner Anglo American rose 0.7 per cent after it said its production rose by 20 per cent in the second quarter, driven by strong diamond and platinum output, while BHP Group finished 1.9 per cent after it also announced positive production numbers.

Unilever shed 0.6 per cent after Israel warned the consumer goods group of “severe consequences” from a decision by subsidiary Ben & Jerry’s to stop selling ice cream in Israeli-occupied territories, and urged US states to invoke anti-boycott laws.

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EasyJet gained 0.9 per cent after saying it plans to fly 60 per cent of its pre-pandemic capacity in the July-September period.

Carnival gained 3.3 per cent after it said it expected to have resumed cruises with 65 per cent of its total fleet capacity by the end of 2021, betting that concerns over a resurgence in Covid-19 cases will not deter holidaymakers.


The pan-European Stoxx 600 rose 0.5 per cent after worries about the fast-spreading Delta coronavirus variant and slowing economic growth had knocked 2.3 per cent off the index on Monday.

In Frankfurt, the Dax added 0.55 per cent, while in Paris, the Cac 40 closed 0.8 per cent higher.

Swiss bank UBS climbed 5.3 per cent on posting a 63 per cent jump in second-quarter net profit, helped by a booming wealth management business. Peers Credit Suisse and Julius Baer also rose.

Swedish home appliances maker Electrolux tumbled 6.4 per cent after it reported a lower-than-expected second-quarter operating profit and warned global supply chain woes would worsen in coming months. Swedish automaker AB Volvo fell 2.5 per cent as it warned of further production disruptions and stoppages this year due to chip shortages.

Norwegian telecoms operator Telenor rose 3.8 per cent after it raised its full-year revenue outlook.


Wall Street’s main indexes jumped on Tuesday, as economically sensitive stocks staged a comeback after a sharp sell-off in the previous session, while IBM gained on strong second-quarter results.

The technology company’s shares climbed 3.5 per cent in the first hours of trading and was the top gainer on the Dow as brokerages raised their price targets on the stock following robust growth in its cloud and consulting businesses.

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All the 11 S&P 500 sectors indexes advanced, with energy, financials and industrials rising more than 2 per cent each.

Focus is now on earnings reports from companies such as Netflix and Chipotle Mexican Grill due after the close of trading. – Additional reporting: Reuters.


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