European stocks trade after Wall Street rebound
European stocks rose on Wednesday as investors followed earnings releases and positive momentum in the United States
The pan-European Stoxx 600 climbed 0.8% at the start of trading as travel and leisure stocks jumped 3.5% to lead the gains as all sectors and major stock markets entered positive territory.
The bullish sentiment in Europe comes after a major comeback on Wall Street on Tuesday, with stocks rebounding sharply from Monday’s liquidation. The Dow Jones Industrial Average jumped 549.95 points to 34,511.99. The S&P 500 jumped 1.52% to 4,323.06 while the Nasdaq Composite rose 1.57% to 14,498.88.
Those gains were a return from Monday’s losses, which saw the Dow Jones plunge more than 700 points, triggered by concerns about global growth and economic recovery as Covid cases rise.
US stock futures edged up in early pre-market trading on Wednesday, while Asia-Pacific stocks rose as well. Japanese exports rose 48.6% in June from a year earlier, according to figures released Wednesday by the country’s finance ministry. This was higher than a 46.2% increase expected by economists in a Reuters poll.
Gains at a glance
On Wednesday in Europe, profits came from Daimler, SAP, Julius Baer and Novartis, while Royal Mail released a business update.
SAP shares fell 3.2% at the start of trading despite raising its outlook for the second time this year, as a strategic push towards cloud computing began to bear fruit.
At the bottom of the Stoxx 600, Dutch chemicals company Corbion fell 6.6% after Barclays reduced the stock to “underweight”, while at the top of the index Swedish group Thule jumped 9 , 8% after its report on the results of the second quarter.
Daimler kept its profit margin outlook unchanged, but warned that the global semiconductor shortage would continue to weigh on car sales until 2022. Shares of the German automaker fell 0.8% at the start of trades.
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– CNBC’s Maggie Fitzgerald and Eustance Huang contributed to this market report.