European stocks ended the session moderately higher, but only after the previous day’s drop, as investors responded positively to earnings updates from Heineken and semiconductor maker ASML.
Stimulating sentiment in the middle of the afternoon, the German Constitutional Court called on plaintiffs to freeze ratification of the EU’s proposed € 800 billion bailout fund, arguing they had failed managed to demonstrate that they were likely to win.
The pan-European Stoxx 600 index ended a rocking session up 0.65% to 436.64, after closing almost 2% lower in the previous session on fears over the Indian variant of Covid- 19.
Overall, however, the market still appears to be looking for a new narrative and remains well aware that the earnings season offers further downside potential as companies struggle to make a positive case to justify a new one. appreciation of the price of their shares, “mentioned IG Chief Market Analyst, Chris Beauchamp.
“At least there may be further progress on the EU’s stimulus fund, following the German Constitutional Court’s decision to allow the fund to go ahead, removing a major hurdle.”
Actions in the German fashion brand Hugo boss soared following a report to buy an interest in the company, including from a French luxury goods manufacturer LVMH.
To take note, investors were also eagerly awaiting the European Central Bank’s rate meeting scheduled for the next day in the hope that anything it might have to say wouldn’t bother government bond markets.
Elsewhere on the equity front, ASML Shares rose 4.55% after the company raised its full-year sales forecast, citing strong demand amid a global shortage of computer chips.
Little rival ASM International rose 4.1% in anticipation of higher orders in the second quarter.
Heineken Shares rose after its trade update showed better than expected beer volumes for the first quarter.
Shares in a pharmaceutical company Hikma advanced because the company said it has resumed the launch of its generic version of GlaxoSmithKlineAdvair Diskus for asthma in the United States after approval by the United States Food and Drug Administration.
Italian football giant Juventus saw its shares fall by 14% after the withdrawal of six English clubs who had pledged to join the proposed European super league after a storm of fan protests.
Actions in the specialist distributor Bunzl fell after the company warned of a moderate slowdown in the second half of the year, despite a first quarter marked by sales of Covid-related protective products.