European stocks rebounded Tuesday to a record high in broad progression, the travel industry rallying as tour operator Tui showed how it had benefited from the collapse of a rival.
The Stoxx Europe 600
XX: SXXP
climbed 0.9% to 428.47. The previous closing record was set on February 6 at 425.49.
The German DAX
DX: DAX
, which gained 1% to 13,627.84, also hit a new record.
US stocks rose Tuesday as Fed President Jerome Powell hit what analysts said to be a cautious tone in Congressional testimony. “The remarks support the belief that developments in the virus are boosting low rates for longer with the increased possibility of further rate cuts – a belief that has helped support risky assets through the shock of the virus to date”, a said Krishna Guha of Evercore ISI.
Tui’s Actions
United Kingdom: TUI
surged 13.1% after the Anglo-German tour operator reduced its first quarter tax loss slightly, saying it had improved booking trends and improved revenue prospects. Travel and tourism company said it now expects high single-digit revenue growth for the year in its markets and airlines compared to previous forecasts of single-digit revenue growth medium to high. Without mentioning Thomas Cook by name, Tui said that she had benefited from “the insolvency of a key competitor”.
Other travel agencies have also increased. Air France-KLM
FR: AF
up 4.7% and International Consolidated Airlines Group
UK: IAG
increased 3.8%.
Deutsche Telekom
FROM: DTE
shares climbed 3.6% as judge approved T-Mobile US merger
United States: TMUS
and Sprint
WE S
Tuesday. Deutsche Telekom owns 63% of T-Mobile US.
NMC Health
UK: NMC
Shares fell 16% as Kohlberg Kravis Roberts said he had not made a proposal to the operator of a Middle Eastern hospital and that he did not intend to do so. Earlier on Tuesday, GK Investment Holding Group said it was in the preliminary stages of considering an offer.
NMC, a target of short seller Muddy Waters, said Monday that KKR and GK Investment had taken “very preliminary approaches”. See the London markets.
