LONDON – European equities rose fractionally on Tuesday as investors took to heart the full approval of the Pfizer / BioNTech vaccine by the U.S. Food and Drug Administration and to allay concerns about the imminent reduction of the Federal Reserve.
The pan-European Stoxx 600 rose 0.1% in the middle of the morning, with travel and leisure stocks adding 1.5% to gain advantage, while banks fell 0.5%.
Shares in Asia and the Pacific also rose in trading on Tuesday, after the U.S. on Monday, as the Nasdaq Composite, which used a lot of technology, reached a record close after approval. of the FDA vaccine. US equities futures rose slightly in the first pre-market markets.
This week, global investors are focusing on the Fed’s Jackson Hole symposium, which takes place virtually Thursday, where policymakers could detail their plans to reduce the central bank’s bond-buying program by $ 120 billion a month. . Fed Chairman Jerome Powell will deliver a speech Friday.
In terms of data, German GDP grew 1.6% in the second quarter adjusted for price, seasonal and calendar effects, the country’s Federal Bureau of Statistics revealed on Thursday.
The expansion slightly exceeded the office’s previous growth estimate of 1.5%, and was driven primarily by consumer and state spending.
Investors continue to monitor the situation in Afghanistan. Reuters reported that G-7 (Group of Seven) leaders are expected to call for a joint decision on Tuesday on whether or not to recognize the Taliban leadership and impose sanctions on the organization.
In corporate news, Morrisons shareholder Legal & General said Monday that a new $ 9.54 billion agreed-upon takeover bid for British supermarket chain private equity group CD&R is a more accurate reflection of its true value.
Rival Sainsbury’s is also the source of speculation, with the company’s shares soaring on Monday following a report that private equity firms could launch bids for more than $ 9.6 billion.
Shares of Sainsbury’s fell 1.6% in early trading on Tuesday, as it looks like some investors picked up the 14% rise on Monday.
At the bottom of the European blue chip index, Swedish medical technology company Getinge fell 2.5%.
At the top of the European blue chip index, British retailer Marks & Spencer rose 4.9% after target price increases by Credit Suisse and Berenberg.
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