{"id":6687,"date":"2021-01-26T09:55:08","date_gmt":"2021-01-26T09:55:08","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/01\/26\/european-shares-rebound-despite-stimulus-covid-worries\/"},"modified":"2021-01-26T09:55:08","modified_gmt":"2021-01-26T09:55:08","slug":"european-shares-rebound-despite-stimulus-covid-worries","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/01\/26\/european-shares-rebound-despite-stimulus-covid-worries\/","title":{"rendered":"European Shares Rebound Despite Stimulus, Covid Worries"},"content":{"rendered":"
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European stocks rose on Tuesday after two sessions of declines despite escalation of U.S.-China tensions in the South China Sea, continued political uncertainty in Italy and doubts over the speed and size of U.S. stimulus.<\/p>\n

Investors await a two-day policy meeting of the U.S. Federal Reserve starting later today for guidance on rates and any outlook on the Fed’s bond-buying plan. <\/p>\n

U.S. earnings also remain in focus, with American Express, 3M, General Electric, Johnson & Johnson and Verizon due to release their quarterly results before the opening bell.<\/p>\n

The pan European Stoxx 600 climbed 0.8 percent to 408.37 after ending at more than two-week low in the previous session. <\/p>\n

The German DAX rallied as much as 1.4 percent, France’s CAC 40 index rose over 1 percent and the U.K.’s FTSE 100 was up 0.8 percent. <\/p>\n

UBS shares jumped 2.2 percent after the Swiss wealth manager posted a surge in quarterly net profit and said it plans to buy back as much as 4 billion francs ($4.5 billion) of shares over the next three years.<\/p>\n

Swedish buyout group EQT soared 13.6 percent after it agreed to take over global real estate investment manager Exeter Property Group.<\/p>\n

Swiss drug maker Novartis lost nearly 3 percent after its fourth-quarter sales and core net income came in below estimates. <\/p>\n

Hikma Pharmaceuticals rose over 1 percent. The company confirmed that it has entered into a non-binding term sheet with GlaxoSmithKline S.A.E., the Egyptian subsidiary of GlaxoSmithKline plc.<\/p>\n

Aerospace company Rolls Royce slumped 9 percent after it warned of significant uncertainty over the “precise shape and timing of the recovery in air traffic”.<\/p>\n

JD Sports Fashion lost 3.3 percent. The company announced that it is exploring additional funding options with a view to increasing its flexibility to invest in future strategic opportunities and that this may involve a non-pre-emptive equity placing.<\/p>\n

British Airways owner IAG lost 2.8 percent and EasyJet fell 1.4 percent amid the prospect of tougher restrictions in England and other European countries.<\/p>\n

In economic news, the U.K. unemployment rate increased and the employment rate continued to decline in three months to November, labor force survey results from the Office for National Statistics showed.<\/p>\n

The jobless rate rose 0.6 percentage points from the previous quarter to 5 percent in three months to November. The expected rate was 5.1 percent.<\/p>\n

At the same time, the employment rate dropped 0.4 percentage points sequentially to 75.2 percent. Employment decreased by 88,000 on the quarter.<\/p>\n

The number of people out of work increased by 202,000 on quarter to 1.72 million in three months to November. <\/p>\n<\/p>\n<\/div>\n