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UPDATE 2-Europe's STOXX 600 closes at record high on global recovery optimism

Published 04/06/2021, 04:25 PM
Updated 04/07/2021, 12:10 AM
© Reuters.

© Reuters.

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* STOXX 600 reclaims pre-pandemic highs
* UK cheers reopening plan next week
* Miners, automakers, travel stocks lead gains
* Credit Suisse slips after $4.7 bln hit on Archegos

(Adds comment, updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
April 6 (Reuters) - Europe's benchmark equity index closed
at a record high on Tuesday, recovering all of its
pandemic-driven losses as investors bet on a speedy global
economic recovery, spurred by bumper stimulus spending and
COVID-19 vaccination programmes.
European traders returned from a long weekend to push the
STOXX 600 .STOXX up 0.7% to 435.36 points. It has climbed more
than 60% from last year's lows and surpassed its previous
all-time high of 433.90 points in February 2020.
The German DAX .GDAXI rose 0.7% to add to its recent
record-setting rally, France's CAC 40 .FCHI was up 0.5%, also
fully recovering from last year's crash and Britain's FTSE 100
.FTSE jumped 1.3%.
"European equity markets have a higher percentage tilt to
the more distressed cyclical and value parts of the market that
performed poorly not only in 2020, but for several years before
as well," Niall Gallagher, investment director for European
equities at GAM wrote in a note.
"Any change in the economic environment that sees a pick-up
in growth and a pick-up in inflation is likely to positively
impact these sectors and as they are a higher weighting in the
market, this explains the recent expectations that European
equities may do better in the next few months."
Economically sensitive sectors such as banking, commodity
and automakers rebounded strongly this year, boosting European
stocks.
However, it took the benchmark seven months more than the
U.S. S&P 500 .SPX to reclaim its pre-pandemic high, slowed
down by a sluggish vaccination roll-out and a new wave of
infections.


Miners .SXPP were the top gainers on Tuesday, up 1.8%,
while travel & leisure stocks .SXTP , automakers .SXAP and
food & beverage shares .SX3P rose 1.0%.
Data showed, euro zone unemployment was unchanged in
February compared with an upwardly revised reading for January,
as European furlough schemes limited the impact of the second
wave of the pandemic in the fourth quarter on jobs. "The euro-zone's unemployment rate was unchanged at 8.3% in
February despite virus measures being tightened, highlighting
the extent to which government policies have protected jobs
during the pandemic," said Jessica Hinds, Europe economist at
Capital Economics.
Swiss bank Credit Suisse CSGN.S slipped 0.4% after sharp
losses last week, as it announced an estimated loss of 4.4
billion Swiss francs ($4.7 billion) from its relationship with
Archegos Capital Management. London stocks took cheer as British Prime Minister Boris
Johnson said the next phase of a planned reopening of the
economy could take place next week. .L
BP BP.L gained 3.2% after the oil major said it expected
to reach its $35 billion net debt target in the first quarter of
2021. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
European shares reclaim pre-pandemic levels https://tmsnrt.rs/3m8Pw0Q
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