(Reuters) – European stocks edged down on Tuesday as the first boost in commodity, banking and travel stocks was offset by losses at popular tech companies and automakers.
The pan-European STOXX 600 index edged down 0.1%, the German DAX down 0.6% and the UK FTSE 100 up 0.5% after a long weekend.
Mining and oil and gas stocks rose more than 1% each, reflecting a rebound in commodity prices, with investors betting on a strong global rebound thanks to massive vaccination campaigns in developed countries and a weak stimulus. previous.
“Notably, the UK appears to be shifting gears to rekindle the engine of the economy without encountering a road bump of rapidly increasing infections or hospitalizations,” said Russ Mold, chief investment officer of AJ Bell.
The travel and leisure sector rose 0.2%, benefiting from Britain’s awaited announcement of a green list for countries people can travel to on vacation.
Tech stocks, however, fell 1.2% after their Wall Street peers came under pressure on Monday.
Chipmaker Infineon fell 4.5% after CEO Reinhard Ploss said he expected supply constraints in the automotive segment to ease only in the second half of this year , the loss of volumes being likely to be offset in 2022.
European automakers fell 0.5%.
German meal kit delivery company HelloFresh fell 4.5% as concerns over consumer behavior, amid easing lockdowns, eclipsed a surge in customer base in the first quarter.
Software company Teamviewer, another stay-at-home beneficiary, fell 7.6% despite quarterly orders and core profits exceeding expectations.
More than half of the companies in the STOXX 600 have so far reported a largely positive earnings season, with 73% exceeding earnings expectations, according to Refinitiv IBES data.
Jeweler Pandora jumped 4.8% as it reported better-than-expected quarterly operating profit, fueled by strong online sales and plans for sales growth in the United States and China.
Dassault Aviation jumped 7.9% after the Egyptian Defense Ministry announced that it had signed a contract with France for the purchase of 30 Rafale fighter jets.
The leading Italian commercial broadcaster Mediaset gained nearly 3% after agreeing to a consensual break with its second investor Vivendi. Vivendi shares fell 0.3%.
Reporting by Sruthi Shankar in Bengaluru; Edited by Anil D’Silva