(RTTNews) – European stocks closed higher on Tuesday, extending gains to a third session, reacting positively to news about China reducing quarantine time for international travelers, and comments from the Central Bank President European, Christine Lagarde, who played down fears of a recession in the euro zone.
“We have markedly downgraded our growth forecast for the next two years. But we still expect positive growth rates due to national buffers against loss of growth momentum,” Lagarde told the Sintra Forum. .
Lagarde reiterated a 25 basis point rate hike in July and more aggressive tightening in September if inflation continues or deteriorates.
The pan-European Stoxx 600 index gained 0.27%. Britain’s FTSE 100 climbed 0.9%, Germany’s DAX 0.35% and France’s CAC 40 0.64%, while the Swiss SMI fell 0.89%.
Among other European markets, Austria, Belgium, Czech Republic, Finland, Iceland, Norway, Poland, Portugal and Spain finished higher.
Denmark, Ireland, the Netherlands, Russia, Sweden and Turkey closed lower, while Greece finished flat.
Survey results from market research group Gfk showed German consumer confidence fell to a new record high in July as consumers see the risk of the economy sliding into recession.
The consumer confidence index fell to -27.4 in July from a revised -26.2 in June. The score was expected to fall to -27.6.
French consumer confidence weakened for the sixth consecutive month in June to its lowest level in nearly nine years, the results of a monthly survey by the statistical office Insee showed. The consumer confidence index fell to 82 in June from 85 in May.
In the UK market, Rolls-Royce Holdings rebounded 6.5%. Prudential jumped 4.3%. BT Group, BAE Systems, Harbor Energy, Shell, Unite Group, Whitbread, Standard Chartered, British Land Company, DCC, Melrose Industries, Centrica and Rio Tinto gained 2-4%.
Severn Trent ended almost 4% lower. Aveva Group, Flutter Entertainment, Entain, Halma, B&M European Value Retail, ICP, M&G, RightMove and Rentokil Initial lost 1-3%.
In the French market, Valeo jumped more than 4% after the automotive supplier won a major contract with BMW.
Renault gained 2.3% amid reports that Nissan refused to name the French automaker as Nissan’s parent company.
Safran, Faurecia, Atos, Airbus Group, Air France-KLM, Kering, Thales and Vinci gain 2 to 5%. Unibail Rodamco, Kering, Orange, LVMH, Carrefour and Pernod Ricard also ended up sharply.
CapGemini loses more than 2%. L’Oréal and STMicroElectronics also closed weakly, but with less pronounced losses.
In Germany, MTU Aero Engines rose more than 4%. Porsche Automobil, Continental, Munich RE, RWE, Brenntag, Allianz, Bayer, BMW, Deutsche Telekom and Covestro gained 1-3%.
Volkswagen gained almost 1.5%. The German automaker is set to sell a minority stake in its U.S. electric vehicle charging business to a branch of Siemens, The Wall Street Journal reported.
Puma, Zalando, Symrise, SAP, Adidas and Merck finished weak.
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