On Thursday, European markets rose, ushering off the third quarter with a bang. The Stoxx Europe 600 SXXP, +0.58 percent increased 0.9 percent in the second quarter after rising 5% in the first and 13% for the year. After a 14 percent first-half gain for the S&P 500 SPX, +0.13 percent, U.S. stock futures ES00, +0.17% NQ00, -0.02% were also higher.
A manufacturing report will be released on Thursday, and the nonfarm payrolls report will be released on Friday, both of which are important economic indicators.
“The successful vaccination deployment and the reopening of key economies have boosted risky assets in the first half of 2021,” said Nadège Dufossé, global head of multiasset at fund manager Candriam. Candriam is leaning its portfolio toward non-U.S. stocks, with a balanced approach to styles, according to Dufossé, and a substantially higher purchasing managers index in Europe compared to the United States will promote rotation to the area. The final eurozone manufacturing PMI for June was 63.4, a record high, up from 63.1 in May. Earnings reports began to come in, revealing how corporations had benefited from the economy’s reopening. Sodexo SW, +2.85 percent, the catering firm, gained 5% after increasing its fiscal-year sales and profit outlook. In its fiscal third quarter, revenue increased 19 percent on an organic basis. The stock of rival Compass Group CPG, +3.15 percent, increased by 4%. Associated British Foods ABF, +4.96 percent shares rose 4% after the group reported a 47 percent increase in revenue in the fiscal quarter ending June 19, mainly to the reopening of Primark clothing outlets. Gap GPS, +3.28 percent, said it is closing all of its locations in the United Kingdom. H&M Hennes & Mauritz HM.B, -1.48 percent shares declined 3% after the apparel store reported a profit on a 62 percent increase in sales and said the third quarter is off to a “good start.” H&M suffered a 28 percent drop in Chinese sales as a result of its decision not to acquire Xinjiang cotton on ethical grounds./n
Read More
