European Shares Mixed As Yields Rise

European Shares Mixed As Yields Rise

May 11, 2021

European stocks were mixed on Tuesday, with U.K. shares outperforming as trading resumed after a holiday-extended weekend. Caution prevailed as U.S. government bond yields edged higher after declining for two consecutive days.

The pan European Stoxx 600 slipped 0.1 percent to 439.48 after rising 0.6 percent on Monday. The German DAX fell 0.7 percent, while France’s CAC 40 index rose 0.2 percent and the U.K.’s FTSE 100 was up 0.6 percent.

Dassault Aviation soared 6.6 percent in Paris after Egypt’s defense ministry decided to purchase an additional 30 Rafale fighter jets to equip its force.

Norwegian telecommunications company Telenor ASA fell 2.3 percent after posting a first-quarter net loss.

Adecco Group lost 4 percent. After posting a profit in the first quarter, the Swiss recruitment firm cautioned that COVID-19 related uncertainties remain elevated.

German chipmaker Infineon tumbled 4.5 percent after it warned of continued bottlenecks in a manufacturing supply chain that’s running at “full speed.”

Remote connectivity software company TeamViewer plunged 7.2 percent despite reporting first-quarter orders and core profit ahead of expectations.

Travel agency TUI rallied 3.6 percent in London, budget airline EasyJet gained 3 percent and British Airways owner IAG added 2.1 percent amid reports that Britain will announce the green list for countries that people can travel to on holiday shortly.

Mining and energy stocks were also moving higher on optimism that a global economic recovery is gathering pace, thanks to successful vaccine rollouts in much of the developed world.

Anglo American, Glencore, Total SE, Royal Dutch Shell and BP Plc climbed 1-2 percent.

Britvic, a plant-based drinks brand, gained 1.4 percent. The company announced the acquisition of Plenish, which offers a range of organic, clean label, plant-based beverages across plant-based milks, cold-pressed juices and functional shots.

In economic releases, British mortgage lending logged its biggest increase on record in March largely driven by the extension of stamp tax duty holiday, the Bank of England said.

The lending secured on dwellings increased by GBP 11.8 billion in March, which was the strongest since the series began in April 1993.

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