LONDON – European stocks advanced Tuesday morning as market attention focused on the global economic recovery and the last meeting of the US Federal Reserve.
The pan-European Stoxx 600 added 0.5% at the start of trading, with cars rising 1.9% to gain advantages, while oil and gas stocks fell 0.4%.
The market focuses on the Federal Reserve, which begins its two-day meeting on Tuesday, followed on Wednesday by a statement and briefing from President Jerome Powell.
Rising interest rates and the recovery of the US economy have highlighted the easy policies of the central bank and market observers have questioned when the Fed can consider unleashing such policies.
Later this week, the Bank of England will meet on Thursday and the Bank of Japan will also begin its two-day policy meeting that same day.
Asia-Pacific markets rose on Tuesday, following a relatively moderate start to World Trade Week as investors await the Fed meeting. U.S. stock market futures mixed on Tuesday in pre-market trading, after Dow and S&P closed record highs amid optimism about economic reopening.
News of the coronavirus vaccine remains focused on Europe after Germany became the last country to suspend use of the AstraZeneca-Oxford University vaccine on Monday due to blood clot problems. The German government also said it was suspending its use as a precaution, and the vaccine regulator, the Paul Ehrlich Institute, called for more investigations.
The World Health Organization, health experts and the vaccine manufacturer have tried to minimize ongoing safety concerns, saying there is currently no evidence to suggest a link between the shot and an increased risk of developing blood clots. . The European Medicines Agency is carrying out investigations.
Major removal companies
Tuesday’s gain was from VW, RWE, Zalando and Greggs on Tuesday.
Volkswagen is setting an operating margin of between 5% and 6.5% this year and 7% -8% in the following years, as it envisages a reduction in costs and an ambitious expansion in the electric vehicle market.
“Within the next 15 years we will see a total turnover of the industry. Electric cars are taking the lead and software is really becoming the main engine of the industry,” Herbert Diess told CNBC on Tuesday.
Shares of the world’s second-largest carmaker gained 4.5% in early business, while German car battery maker Varta jumped 6.5% to lead the Stoxx 600.
Zalando and French telecommunications company Iliad gained more than 5% after strong full-year results.
At the bottom of the European blue chip index, German biotech company MorphoSys fell more than 11% after its earnings report.
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