European stocks rise for second day

iStock

London - European shares rebounded further as investors speculated a selloff that spurred the worst weekly decline since February was overdone.

Earnings reports were also in focus. Credit Suisse Group AG led lenders higher, rallying 5.8% after posting a smaller loss than analysts estimated. Pandora A/S jumped 7.4% after reporting better-than-projected results and raising its full-year forecast.

A rebound in copper pushed miners to the biggest gains among industry groups, with ArcelorMittal and Anglo American up at least 2%.

The Stoxx Europe 600 Index added 0.8% in London, as nine out of ten shares rose. The benchmark closed 0.5% higher yesterday amid optimism over continued central-bank support, while giving up some intraday gains as oil fell.

The Stoxx 600 is rising this week after falling 5.4% from an April 20 peak. A rally that pushed up the gauge 16% from a February low unravelled as analysts slashed estimates to call for a profit decline this year, and disappointing economic reports cast a pall on prospects for global growth.

Still, weak US data last week added fuel to speculation that the Federal Reserve will raise interest rates at a slower pace. Traders are now pricing in little chance of higher borrowing costs in June, and less than even odds of a hike in the next nine months.

Luxury shares advanced after Credit Suisse raised its recommendation on the group to overweight, similar to buy, from underweight. LVMH and Christian Dior SE climbed more than 2%.

ThyssenKrupp lost 2.7% after a steel glut brought on by Chinese exports led the company to cut its profit forecast.

ZAR/USD
17.46
(-0.83)
ZAR/GBP
22.98
(-1.10)
ZAR/EUR
20.70
(-0.69)
ZAR/AUD
12.57
(-0.82)
ZAR/JPY
0.17
(-0.89)
Gold
2057.17
(+1.05)
Silver
28.10
(+4.65)
Platinum
984.00
(+2.14)
Brent Crude
45.33
(+1.67)
Palladium
2219.16
(+2.56)
All Share
57859.31
(+0.40)
Top 40
53550.77
(+0.51)
Financial 15
9845.22
(-0.84)
Industrial 25
76391.20
(+0.30)
Resource 10
60511.43
(+1.21)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 902 votes
It depends on how the funds are used.
74% - 6006 votes
No. We should have gotten the loan elsewhere.
15% - 1215 votes
Vote