European stocks moved higher on Wednesday, with banks and carmakers rising, and UK stocks higher ahead of the spring budget message. U.S. equities futures marked a stronger start for Wall Street.
An Stoxx Europe 600 SXXP,
rose 0.7% to 415.99, ready for a third straight positive session, after closing to a higher level Tuesday. Regional gains were driven by the FTSE 100 UKX index,
which rose 1.3% ahead of the UK budget announcement.
The German DAX DAX,
rose 1%, and the French CAC PX1,
received 0.9%. Not GBPUSD,
and euro EURUSD,
they were smooth.
US stock futures ES00,
YM00,
NQ00,
they marked a forward reversal for Wall Street, after tech stocks led the way south for markets on Tuesday. Asian markets also closed higher, after being slammed by China’s top banking regulator warning of risks from the country’s property market and bubbles in developed equities.
In Europe, investors are keeping an eye out for a lock-in discount strategy coming from German Chancellor Angela Merkel, as pressure builds to reopen the region’s largest economy. Merkel is expected to agree to take gradual action, according to a draft plan viewed by Reuters.
Automobile manufacturers were among the biggest winners in Europe. Renault RNO,
shares gained 4%, after the French automotive group upgraded to buy from neutral at UBS. Shares of Volkswagen VOW,
and Porsche PAH3,
they were also up 4% each.
And automaker Stellantis STLA,
– a product of the fiat of Fiat Chrysler Automobiles and Peugeot – said it expects operating revenue margins to change between 5.5% and 7.5% for 2021. Shares rose over 2%.
Banks were also climbing, with HSBC HSBC under great pressure,
and BNP Paribas BNP France,
up over 2% each man.
The home-building and hospitality sectors were leading gains in London, with hopes of further help from Treasury Chancellor Rishi Sunak as he delivers his budget speech around noon in London. Sky News said it is expected to announce an extension of the furlough plan, which will pay 80% of staff salaries until the end of September.
Shares of Whitbread WTB pub owner,
5% climb and PSN Persimmon home builder,
just 4%.
Persimmon said pretax profits and revenues fell in 2020, as a result of the COVID-19 outbreak, but recovery in the second half has led to 2021.
Extracts from Avast AVST,
it fell over 2%, even after the cybersecurity company reported higher profits and revenues, and said it sees more organic revenue growth ahead.