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Europe close: Stocks put in timid bounce

By Alexander Bueso

Date: Tuesday 20 Jul 2021

Europe close: Stocks put in timid bounce

(Sharecast News) - European shares staged a small bounce on Tuesday as bargain hunters stepped in, but some analysts remained quite cautious regarding the outlook for stocks in the immediate future.
The pan-European Stoxx 600 index was up 0.52% at 446.61, with the German Dax 0.55% higher alongside to 15,216.27 while the Cac-40 put on 0.81% to end the day at 6,346.85.

In parallel, euro/dollar was off by 0.21% to 1.1775 while front-date Brent was up 0.96% to $69.28 a barrel on ICE.

"US markets have followed their European counterparts higher today, with traders opting to buy the dip in the wake of yesterday's sharp decline. Fears around the rise of the Delta variant remain evident despite today's reprieve, with a five-month low for the US 10-year highlighting the lack of full conviction behind this move," said IG senior market analyst Josh Mahony.

"We are also seeing that risk-off sentiment exhibited throughout the FX-markets, with GBPUSD hitting a five-month low thanks to rising UK Covid cases and haven dollar demand."

In equity news, shares in miners BHP and Anglo American were both higher as they provided upbeat production numbers.

Swiss bank UBS rose after it posted a 63% jump in second-quarter net profit, helped by a booming wealth management business.

Among decliners, Sweden's Volvo fell as it warned of further production disruptions and stoppages this year due to chip shortages.

Swedish industrial manufacturer Alfa Laval added 8% after beating profit estimates, while at the bottom of the index, compatriot home appliance company Electrolux fell more than 8% after issuing a supply chain warning.

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