Even as concerns over the more infectious Delta strain of COVID-19 continued to weigh on markets, European stocks rose on Tuesday, powered by those in companies that stand to benefit from economic growth and inflation. The Stoxx 600 SXXP, +0.34 percent increased 0.2 percent, while the London Stock Exchange’s FTSE 100 UKX, +0.21 percent gained 0.1 percent. The CAC 40 PX1, +0.37 percent in Paris gained 0.3 percent, while the DAX DAX, +0.80 percent in Frankfurt gained 0.6 percent. After dropping 150 points on Monday to close at 34,283, Dow industrials futures YM00, +0.12 percent were heading up around 25 points, indicating a mild but slightly optimistic open.

Early European trading was characterized by a recurrence of the “reflation trade”—a rally among stocks expected to gain from the ongoing economic recovery and reopening from Covid-19. Mining, industrials, and financials were the sectors that added the most to the Stoxx 50 SX5E, +0.45 percent index of Europe’s largest corporations, keeping the major indexes in the green throughout the continent. The increase came following losses on Monday, as concerns about the contagious Delta strain of COVID-19 grew. Spain, Portugal, and Malta were among the countries that imposed fresh travel restrictions on the United Kingdom, which is home to the variation, with Hong Kong prohibiting direct flights from the country. Also check out: According to an Oxford study, the third dosage of the AstraZeneca COVID-19 vaccination improves immunological response. “European stocks didn’t have the best start to the week yesterday, with big drops in energy and travel and leisure stocks, as rising Delta variant cases across Europe and Asia prompted the implementation of new border restrictions, for both vaccinated and unvaccinated travelers alike,” said Michael Hewson, an analyst at CMC Markets. According to Hewson, the European session “looks set for a lukewarm start after yesterday’s losses.” The European Commission’s Euro area Sentiment Index, or ESI, is expected to show a significant acceleration in economic activity by the end of the second quarter of 2021, according to economists. According to national surveys, the headline euro area ESI is anticipated to surge to its highest level since 2000, according to analysts at Daiwa Capital Markets. According to mortgage company Nationwide, property prices in the United Kingdom jumped 13.4% in June compared to the same period last year, the highest yearly increase since 2004. Housebuilder stocks in the United Kingdom soared on the news, with Persimmon PSN, +1.02 percent, Taylor Wimpey TW, +0.41 percent, and Barratt Developments BDEV, +0.20 percent at the top of the FTSE 100’s risers. Plus, global car manufacturers are concentrating their new electric-vehicle battery production in this vital location. Rexel RXL, +5.50 percent, a French electric firm, saw its stock rise more than 4% after the company boosted its sales projection for 2021. Rexel now forecasts same-day sales increase of between 12 and 15 percent, up from a previous projection of between 5 and 7 percent. The shares of Hunting HTG, -0.41 percent fell more than 4% after the oil services company said it expects to lose money in the first half of the year, owing to market circumstances and the disruption to oilfields in Texas in February due to a major winter storm. Argo Blockchain ARB, -2.22 percent, one of the few publicly traded crypto asset miners, saw its stock drop over 2% after the British company announced it had taken out a £14 million short-term loan to fulfill operating cash flow requirements and expand its Texas data center. Argo’s bitcoin holdings are used as collateral for the loan, which was arranged with digital asset investor Galaxy Digital. Since reaching highs around $60,000 earlier this year, the price of bitcoin BTCUSD, +1.45 percent has dropped by more than 40%.

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