{"id":12452,"date":"2021-08-02T09:56:50","date_gmt":"2021-08-02T09:56:50","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/08\/02\/european-shares-gain-on-earnings-optimism\/"},"modified":"2021-08-02T09:56:50","modified_gmt":"2021-08-02T09:56:50","slug":"european-shares-gain-on-earnings-optimism","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/08\/02\/european-shares-gain-on-earnings-optimism\/","title":{"rendered":"European Shares Gain On Earnings Optimism"},"content":{"rendered":"
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European stocks advanced on Monday as optimism around earnings and economic reopening helped investors shrug off signs of slowing growth in China.<\/p>\n

Risk appetite was also boosted after the U.S. Senate on Sunday finalized the text of its $1 trillion bipartisan infrastructure bill. The legislation will next be introduced to the Senate.<\/p>\n

Closer home, the euro area manufacturing sector growth moderated in July but the pace of expansion remained elevated, final data from IHS Markit showed.<\/p>\n

The final factory Purchasing Managers’ Index fell to 62.8 from 63.4 in June. This was the lowest reading since March.<\/p>\n

But the reading was above the flash 62.6 and the sector has recorded successive months of expansion since July 2020.<\/p>\n

Germany’s retail sales growth exceeded expectations in June as the relaxation of restrictions related to the pandemic supported consumer demand, data from Destatis revealed earlier today.<\/p>\n

Retail sales grew 4.2 percent month-on-month in June, much faster than the economists’ forecast of 2 percent. Nonetheless, the latest increase was slower than the 4.6 percent growth logged in May.<\/p>\n

Elsewhere, Britain’s factories reported a further slowing of growth in July due to shortages and supply chain problems caused by the COVID-19 pandemic, in line with expectations.<\/p>\n

The Bank of England looks set to raise its forecasts for inflation on Thursday, at the end of its August meeting.<\/p>\n

The pan European Stoxx 600 rose 0.6 percent to 464.64 after declining half a percent on Friday. The German DAX edged up 0.3 percent, France’s CAC 40 index climbed 0.9 percent and the U.K.’s FTSE 100 rallied 1.1 percent.<\/p>\n

Aerospace company Meggitt soared as much as 57 percent in London after it agreed to a takeover offer from Parker-Hannifin Corp.<\/p>\n

Jet and auto parts supplier Senior Plc surged 6.2 percent after raising full-year expectations.<\/p>\n

HSBC Holdings shares gained 1 percent after the Asia-focused lender reported that its first-half profit more than doubled.<\/p>\n

NatWest Group rallied 2.4 percent after unveiling plans to distribute capital to shareholders.<\/p>\n

Axa climbed 3.7 percent in Paris as it reported higher revenues across its global insurance and reinsurance business<\/span>, driven by improving pricing and market conditions.<\/p>\n

Allianz slumped 8.3 percent. The German insurer said earnings could be materially hurt by a U.S. Justice Department investigation into its Structured Alpha Funds that have been linked to investor losses during the coronavirus<\/span>-related market downturn early last year.<\/p>\n

Vonovia gained 1.6 percent. The company nudged up its offer for rival real estate company Deutsche Wohnen SE to about 19.1 billion euros ($22.7 billion).<\/p>\n

Automakers led a broad advance, with BMW, Daimler, Volkswagen and Renault rising 2-3 percent. <\/p>\n

Heineken, the world’s second-largest brewer, rose about 1 percent after reporting strong earnings for the first half of the year. <\/p>\n<\/p>\n<\/div>\n