European Shares Climb On China Stimulus

European Shares Climb On China Stimulus

May 27, 2022

European stocks rebounded on Friday after China cut its key lending rates by a record quantum to spur growth.

The pan European Stoxx 600 climbed 1.6 percent to 434.83 after declining 1.4 percent in the previous session.

The German DAX jumped 1.9 percent, France’s CAC 40 index added 1.2 percent and the U.K.’s FTSE 100 was up nearly 2 percent.

Mining and energy stocks surged, with Anglo American, Glencore, Royal Dutch Shell and BP Plc rising 2-3 percent.

British online retail group THG soared 22 percent after rejecting a £2.07bn bid from two investment companies.

Likewise, M&C Saatchi shares jumped 37 percent after the advertising group agreed a takeover by consultancy Next Fifteen Communications.

Air France-KLM shares soared 3.3 percent. The Franco-Dutch airline has entered into exclusive discussions with Apollo for a 500-million euros capital injection into an affiliate owning spare engine.

Richemont shares plunged 11 percent after the Swiss luxury goods group said discussions about its “Luxury New Retail” partnership are “taking time”.

German luxury fashion house Hugo Boss fell over 1 percent on news that its chief operating officer will leave the company at the end of the month.

In economic releases, preliminary figures from the statistical office Destatis showed earlier in the day that Germany’s producer price inflation accelerated further in April to set a fresh record high.

The producer price index climbed 33.5 percent year-on-year following a 30.9 percent increase in March as energy prices continued to soar amid the war in Ukraine. Economists had forecast a 31.5 percent rise.

Elsewhere, data showed U.K. retail sales expanded 1.4 percent monthly in April, reversing a revised 1.2 percent decline in March. Sales were forecast to drop 0.2 percent in April.

Investors shrugged off separate data showing that confidence among British consumers fell in May to its lowest level in at least five decades.

Source: Read Full Article