Europe close: Stocks edge higher despite soft survey readings
By Alexander Bueso
Date: Wednesday 11 Aug 2021
(Sharecast News) - European stocks edged higher on Tuesday even after a closely-followed survey revealed investors' concerns of a new wave of Covid-19 infections, including in China and the knock-on effect for exports.
"European markets have enjoyed a positive end to the day, with the FTSE 100 pushing into a fresh one-month high as reopening plays gain traction over growth stocks," said IG senior market analyst Josh Mahony.
By the end of trading, the benchmark Stoxx Europe 600 index was 0.35% firmer at 472.32, Germany's Dax was up 0.16% to 15,570.71 and France's CAC 40 was 0.1% higher at 6,820.21.
On the data front, the ZEW institute's closely-followed economic sentiment index for Germany fell by 22.9 points in August to reach 40.4 (consensus: 56.0).
"Expectations have declined for the third time in a row. This points to increasing risks for the German economy, such as from a possible fourth COVID-19 wave starting in autumn or a slowdown in growth in China," ZEW president Achim Wambach said in a statement.
According to Pantheon Macroeconomics's Claus Vistesen, the drop in the index pointed to a peak in German growth momentum, although the economist conceded that a slowdown had to be expected at some point.
In equity markets, Paddy Power owner Flutter Entertainment was a high riser after it said first-half earnings rose 75% as the gambling group benefited from the acquisition of Stars in the US. Adjusted earnings before interest, tax, depreciation and amortisation increased to £597m from £342m in the six months to the end of June from a year earlier as revenue doubled to £3.05bn from £1.54bn.
HelloFresh rallied after it reiterated its full-year guidance and posted a jump in second-quarter revenues.
Elsewhere, stock in InterContinental Hotels dipped despite the company saying it swung to a profit in the first half as trading recovered from the pandemic hit.
Dutch chemicals company Corbion fell after disappointing first-half results.
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