• Thu. Jan 27th, 2022


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European markets climb to new records on strong economic data; oil rallies – CNBC

European markets moved higher on Tuesday after closing out their fourth straight month of gains, as investors digested a host of economic data.

The pan-European Stoxx 600 climbed 1% by mid-morning trade to a new all-time high, with basic resources adding 3.2% to lead gains as all sectors and major bourses traded firmly in positive territory.

Shares in Asia-Pacific were mostly rose by Tuesday’s close as investors reacted to China’s Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for May. The final activity reading came in at 52, slightly exceeding analyst expectations of 51.9.

U.S. stock index futures were also higher in early premarket trade on Tuesday, signaling a positive start on Wall Street later in the day.

Europe’s major indexes closed lower on Monday after a quiet session due to public holidays in the U.K. and the U.S., with inflation figures out of Germany and Spain guiding sentiment. Optimism over the region’s economic recovery prospects has continued to drive markets higher in recent months, with more indicators to come on Tuesday.

Final IHS Markit manufacturing PMI readings for May showed activity in the euro zone hitting a record high 63.1, up from 62.9 in April and exceeding an initial flash estimate of 62.8.

In the U.K., factory activity rose to 65.6 in May from 60.9 in April, its sharpest increase since records began, as a windfall of new orders drove the country’s industrial resurgence.

The European Commission on Monday proposed that vaccinated tourists should be exempted from mandatory testing or quarantine measures when travelling between EU nations, urging a progressive easing of travel restrictions to accommodate rising Covid-19 inoculations.

In corporate news, Atlantia investors on Monday backed the $11 billion sale of the Italian infrastructure group’s stake in its motorway division to state bank CDP and allies Blackstone and Macquarie.

Oil prices also surged overnight during Asian trading hours, with international benchmark Brent crude futures up 2.15% at $70.81 per barrel. U.S. crude futures advanced 2.8% to $68.18 per barrel.

In terms of individual share price movement, British office space contractor IWG added 4.7% in early trade while Luxembourg’s InPost fell 2.4%.

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