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European stocks climb China’s stimulus

European equities rebounded on Friday after China lowered key lending rates by record amounts to boost growth.

The Pan-European STOXX 600 rose 1.6% to 434.83 after falling 1.4% in the previous session.

Germany’s DAX rose 1.9%, France’s CAC 40 index rose 1.2%, and the UK’s FTSE 100 rose nearly 2%.

Anglo American, Glencore, Royal Dutch Shell and BP Plc rose 2-3%, resulting in a surge in mining and energy inventories.

UK online retail group THG surged 22% after rejecting £ 2.07 billion bids from two investment companies.

Similarly, M & C Saatchi’s share price surged 37% after the advertising group agreed to acquire it by consultancy Next Fifteen Communications.

Air France-KLM shares surged 3.3%. Franco Dutch Airlines has begun exclusive talks with Apollo on a € 500 million capital injection into an affiliate that owns spare engines.

Richemont’s share price plummeted 11% after the Swiss luxury group said discussions about the “luxury new retail” partnership were “time consuming.”

German luxury fashion house Hugo Boss has fallen by more than 1% on news that the chief operating officer will leave the company at the end of the month.

In the economic announcement, the statistics bureau Destatis’s preliminary figures show that Germany’s producer inflation accelerated further in April, reaching a record high.

As energy prices continued to rise during the Ukrainian war, the producer price index rose 30.9% in March and then 33.5% year-on-year. Economists predicted a 31.5 percent increase.

Elsewhere, data show that UK retail sales increased 1.4% each month in April, reversing the 1.2% decline revised in March. April sales were expected to decline 0.2%.

Investors ignored other data showing that UK consumer confidence fell to its lowest level in May for at least 50 years.

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European stocks climb China’s stimulus

Source link European stocks climb China’s stimulus

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