European stocks rebound after worst sell-off of 2021 Reuters


© Reuters. The German stock price index DAX chart was taken on July 19, 2021 on the Frankfurt Stock Exchange in Germany. REUTERS/Staff

By Sruthi Shankar

(Reuters)-European stock markets rebounded on Tuesday after suffering the worst sell-off this year on the previous trading day, thanks to a small number of positive corporate profits and production updates by miners.

On Monday, the pan-European index rose 0.8%, after concerns about the rapidly spreading Delta variable and slowing economic growth caused the index to fall 2.3%.

In the first sell-off, mining stocks rose 1.7% after BHP Billiton Group (NYSE:) and Anglo-American (LON:) Provides optimistic production data.

Swiss bank UBS (UBS) shares climbed 4.6%, and its second-quarter net profit increased by 63%, thanks to the booming wealth management business.Accompany Credit Suisse (Six:) And Julius Baer also rose.

“Although the US economy is in a slowdown phase, and we expect European economic growth to peak this summer, we continue to be bullish on risk assets in 12 months,” analysts at BCA Research wrote in a report.

“The United Kingdom is an example-despite the sharp increase in COVID-19 infections, widespread vaccination has kept hospitalization rates low. Therefore, the market impact of the Delta variant may eventually be fleeting in advanced economies.”

British Airways EasyJet (LON:) said it plans to fly 60% of its pre-pandemic capacity between July and September, and its stock price rose 1.9%.

The European Travel and Leisure Index has fallen sharply from its historical high set in April, and travel-related stocks have been hit by the surge in the number of infections on the European continent and last-minute changes in travel rules.

The US government issued the highest-level warning on Monday, banning travel to the UK.

Chart: The European Travel and Leisure Index has fallen 17% since its peak in April-https://fingfx.thomsonreuters.com/gfx/mkt/klpykeeqqpg/Pasted%20image%201626770849236.png

Among other stocks, Norwegian telecom operator Telenor rose 2.6% after raising its full-year revenue forecast.

French spirits group Remy Cointreau fell slightly by 0.2%, although its organic sales in the first quarter more than doubled after the reopening of bars and restaurants in Europe.

According to Refinitiv IBES estimates, analysts expect STOX 600’s profit in the second quarter to increase by 108.6% over the same period last year because of the relaxation of COVID-19 restrictions throughout Europe.

Sweden’s AB Volvo fell 3.8% because it warned that due to chip shortages, production will be further interrupted and stopped this year.

Home appliance maker Electrolux plunged 9.7% after the company reported lower-than-expected operating profit in the second quarter and warned that global supply chain difficulties will worsen in the coming months.

(This story has been revised to add deleted words in the chart)

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