3 Minutes, by Reuters (Reuters) – Energy stocks rose more than 2% as crude prices rose, and solid earnings reports helped assuage some concerns about the infectious “Delta” version of the coronavirus. On July 1, 2021, a graph of the German stock market index DAX is shown at the stock exchange in Frankfurt, Germany. REUTERS/Staff The STOXX 600 index in Europe rose 0.6 percent to 455.63 points, with energy stocks having their best day in a month. TechnipFMC Plc, a provider of energy services, was the sector’s highest gainer, up 4.4 percent. Oil prices jumped over $2 on the back of rising global demand and decreasing oil stockpiles in the United States. According to Reuters, OPEC will increase output by less than planned, resulting in a supply gap and supporting oil prices later this year. “This strategy is being implemented in the midst of a spreading Delta variation that is still affecting mobility in some areas. Separately, Washington’s talks with Iran may be able to alleviate a significant percentage of the predicted deficits in the future “TD Securities analysts stated in a report. “With supply artificially restrained, a Summer Breakout in energy markets might continue to gain momentum.” Following an increase in the number of COVID-19 instances in Asia and the United Kingdom, travel-related equities jumped 1.9 percent after plunging for four days in a row on fears of tighter restrictions. Airlines EasyJet, IAG, the owner of British Airways, and Ryanair all saw their stock rise between 1.5 and 4%. The STOXX 600 index is already within 1% of a record high set in June, as optimism in a vaccine-led economic recovery this year reaches a 21-year high. GRAPHIC-STOXX 600 is less than 1% below its June peak – Figures released on Thursday indicated that the euro zone manufacturing sector increased at its fastest rate on record last month. The DAX in Germany increased by 0.5 percent as data revealed that retail sales in Europe’s largest economy improved in May. The only losers for the day were technology companies, which had thrived during the outbreak, down 0.7 percent. Investors were likely at ease switching to sectors that were more susceptible to economic revival. Associated British Foods increased 4.8 percent after reporting that sales at its Primark fashion outlets that reopened after COVID-19 lockdowns exceeded forecasts in all markets in the third quarter. Sodexo, a French catering and food services company, increased its second-half revenue and profit margin predictions, counting on the full reopening of American schools. Following the news, Sodexo’s peer, Denmark’s ISS, soared 6.6 percent to the top of the STOXX 600. H&M, on the other hand, slumped 1.1 percent after reporting second-quarter earnings that were still significantly below pre-pandemic levels. Sagarika Jaisinghani, Julien Ponthus, and Ambar Warrick contributed reporting; Uttaresh.V and Lisa Shumaker edited the piece./n
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