On Friday, European shares rose ahead of the release of vital US economic data. After days of turmoil due to fears about the highly virulent version of the coronavirus that causes COVID-19, stock market indices throughout the region appeared to be on track to end the trading week with gains. The Stoxx 600 SXXP, +0.24 percent increased 0.25 percent, while the London Stock Exchange’s FTSE 100 UKX, +0.10 percent gained 0.2 percent. The CAC 40 PX1, -0.06% in Paris opened higher but fell to just below level, while Frankfurt’s DAX DAX, +0.23 percent rose 0.2 percent. After rising 131 points on Thursday to close at 34,633, Dow industrials futures YM00, -0.02 percent were heading down around 10 points, indicating a soft open.
The major European stock indices have had a tumultuous week as the region has been jolted by rising concerns about the more contagious delta version of coronavirus, which has resulted in additional travel restrictions throughout the continent. New limitations on passengers from the United Kingdom, where the variation is common, have been imposed by Spain, Portugal, and Malta. Also check out: Here’s how different countries handle Delta variation hotspot arrivals. Stocks, on the other hand, have taken it in stride, analysts say, and are expected to conclude the trading week even or slightly higher than on Monday, ahead of critical U.S. jobs data. “The next catalyst for investors will be today’s US jobs report, which could provide some insight on the state of the recovery as well as the Federal Reserve’s anticipated monetary policy plans,” said Jim Reid, a strategist at Deutsche Bank. Nonfarm payrolls, which measure the number of workers in the United States excluding those in agriculture and a few other jobs, are expected to increase by 700,000 or more, according to Reid. According to Reid, this should help reduce the jobless rate in the United States by a tenth, to a post-pandemic low of 5.7 percent. “That would still leave total nonfarm payrolls -6.9 million below their February 2020 level, implying that we have a long way to go before we return to pre-COVID normalcy,” Reid continued. Plus: According to JPMorgan, here’s how the delta variant could affect markets and what to do about it. The stock prices of Neles NELES, +7.29% and Valmet VALMT, -5.85% differed dramatically after the two Finnish manufacturing enterprises announced their intention to unite. Neles, which supplies flow-control devices such as valves used in the oil-and-gas refinement process, saw its stock rise nearly 7%, while Valmet, which provides technology and automation solutions to industry, saw its stock fall 6%. ASML ASML, +1.40 percent and ASM International ASM, +1.68 percent, both Dutch semiconductor makers, boosted European stocks, with ASML ASML, +1.40 percent up 1% and ASM International ASM, +1.68 percent up 1.5 percent. Micron Technology MU, -5.73 percent, which supplies crucial equipment to chip makers, gave ASML a boost by announcing that it would begin using its machines in 2024. ASM, a competitor in the industry, said that orders in the second quarter of the year were substantially greater than projected, with total orders exceeding €500 million ($591 million). Air France-KLM AF, +0.34 percent, Lufthansa LHA, +0.47 percent, Ryanair RYA, +1.05 percent, Wizz Air WIZZ, -0.47 percent, and easyJet EZJ, +0. Ryanair and Wizz Air both revealed passenger data that analysts said was optimistic for the sector’s revival, with Wizz Air filling over two-thirds of its seats in June and Ryanair’s traffic nearly tripling from May. According to Reuters, Inditex ITX, -0.93 percent stock tumbled over 1% after French prosecutors started an investigation into the retail giant, which owns Zara, for allegedly concealing “crimes against humanity” tied to forced labor of minority Muslim Uyghurs in China’s Xinjiang region. Prosecutors are also looking into Uniqlo France, SMCP, and Skechers, according to reports. Uniqlo’s parent company, Japan’s Fast Retailing 9983, -0.89%, saw its stock drop by over 1%./n
Read More
