Reuters

The DAX chart of the German stock index is pictured on the stock exchange in Frankfurt, Germany on September 22, 2021. REUTERS / Staff

The pan-European STOXX 600 index rose 1.3%, seeking to end the week with solid gains after falling sharply on Monday. Technology and automotive stocks were the main winners, each increasing by more than 1.5%.

Asian stocks rose after Evergrande jumped 30% in Hong Kong markets as its chairman sought to reassure investors after the company’s unit said it “resolved” to pay a coupon on an onshore bond.

However, the property developer’s Frankfurt-listed shares fell 19.5%.

“It was a bit of a panic in September,” said Will James, fund manager of Premier Miton European Equity Income. “It’s a big problem, but it’s not necessarily a problem that will spill over beyond Evergrande and the Chinese real estate sector.”

“We are at a point where we have had an aggressive recovery from COVID, we have passed peak growth and there is a question mark over the end of QE (quantitative easing). The problem of liquidity withdrawn from the market leads to the potential for greater volatility. “

A survey showed that euro area trade activity grew at its slowest pace in five months in September, as restrictions to limit the Delta variant of the coronavirus hit demand and chain constraints. supply have pushed input costs to a high of more than two decades.

The UK’s premier FTSE 100 lagged regional indices with a 0.5% increase ahead of the Bank of England’s policy decision.

The central bank is expected to keep the interest rate stable as it nears the end of its £ 895 billion ($ 1.22 trillion) asset purchase program.

The U.S. Federal Reserve said on Wednesday it would likely start cutting its monthly bond purchases as early as November and signaled that interest rate hikes could follow faster than expected.

Boosting the automotive sector, French parts company Faurecia jumped 6.4% as strong cash flow forecasts outweighed lowered financial targets for 2021 due to sharp cut in global automotive production .

Its competitors Valeo gained 5.4% and Continental 4.4% after a recent bout of weakness in the sector.

French vaccine maker Valneva climbed around 10% after saying it was expanding testing of a COVID-19 vaccine candidate and remaining in talks with the European Commission over a potential contract.

Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur


Source link

Previous

Acura Grand Prix of Long Beach faq - NBC Los Angeles

Next

Loris Baz expects "nothing" for his return to World Superbike

Check Also