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UPDATE 2-European shares rise for second day as commodity, construction stocks gain

Published Jan 07, 2021 17:55 Updated Jan 08, 2021 01:10
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* St Gobain soars after upbeat Q4 forecast
* Miners, oil stocks gain on U.S. stimulus hope
* DeliveryHero slips after new share issuance

(Updates prices throughout, adds comments)
By Amal S and Shreyashi Sanyal
Jan 7 (Reuters) - European stocks climbed for a second
straight session on Thursday as construction stocks gained on
upbeat sales forecast from Saint Gobain and commodity-linked
shares rose on hopes of larger U.S. stimulus after Democrats won
Senate control.
The pan-European STOXX 600 index .STOXX advanced 0.5% to
near February 2020 highs, while London's blue-chip FTSE 100
.FTSE gained 0.2% and Germany's DAX index .GDAXI was up
0.6%.
Construction & material stocks .SXOP were the top gainers,
led by a 2.3% rise in France's Saint Gobain SGOB.PA after it
said fourth-quarter results would significantly exceed
expectations. Meanwhile, economically sensitive sectors such as mining
.SXPP , energy .SX7E and industrials extended their rally on
the prospects of more U.S. stimulus after Democrats won control
of the Senate.
"While a Blue Wave could pave the way for stricter
regulations and tax hikes, investors try to see it from a
positive side... and further stimulus measures are likely to
follow and without a months-long stalemate," said Milan
Cutkovic, market analyst at Axi.
Gains in Swedish industrial companies Atlas Copco
ATCOa.ST , Sandvik SAND.ST and Volvo VOVLb.ST drove
Stockholm stocks .OMXSPI to all-time highs.
"We highlight that Basic Resources, Construction & Materials
have underperformed since the beginning of December and, given
their sensitivity to fiscal policy in general through
infrastructure investment, they have catch up potential,"
Unicredit analysts said in a note.
European wind turbine makers Vestas VWS.CO , Orsted
ORSTED.CO and Siemens Gamesa SGREN.MC all extended gains
from the previous session.
Renewable stocks are widely considered as winners of a Joe
Biden administration, given the U.S. president-elect's proposed
$2 trillion climate plan.
Sentiment was also boosted by European approval for a second
COVID-19 vaccine developed by Moderna Inc MRNA.O . Meanwhile, demand for German-made goods defied expectations,
rising 2.3% in November, the latest in a string of data points
showing the Europe's largest economy being unexpectedly
resilient in the face of the pandemic. Among other movers, LafargeHolcim LHN.S rose 2.4% after
the world's biggest cement maker said it would buy Firestone
Building Products from Bridgestone Americas in a deal worth $3.4
billon. Delivery Hero DHER.DE slipped 2.9% after the German food
delivery firm said it raised around 1.2 billion euros ($1.48
billion) by issuing new shares to fund growth. Mitchells & Butlers MAB.L dropped 3.2% after the British
pub operator said it was exploring an equity capital raise as a
new national lockdown shut its sites across England.

UPDATE 2-European shares rise for second day as commodity, construction stocks gain
 

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