European shares advance on rate optimism; UK elections in focus (updated)
04/07/2024 09:32
(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
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STOXX up 0.4%, automobiles lead gains
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Continental set for best day in over two years
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Ericsson slips after $1.09 billion impairment
(Updated at 0816 GMT)
By Jesus Calero and Shubham Batra
July 4 (Reuters) - European shares rose on Thursday amid
optimism around U.S. interest rate cuts following soft economic
data, while London markets gained as voting began in the UK with
opinion polls predicting a historic win for the Labour party.
The pan-European STOXX 600 index .STOXX rose 0.4% by 0816
GMT, led by a 1.3% rise in the automobiles and parts sub-index
.SXAP .
The sub-index was powered by German automotive supplier
Continental CONG.DE , whose shares jumped 10.1% to a three-week
high, with a trader pointing to pre-close comments on auto unit.
The UK's FTSE 100 .FTSE advanced 0.7%, with markets
waiting to see how large a majority the Labour Party might win.
"The UK outcome, widely expected to be a Labour victory,
won't have much impact unless there's a big upset or surprising
outcome, as markets have likely already discounted this," said
Bas van Geffen, senior macro strategist at Rabobank.
French stocks .FCHI advanced for a second day with a 0.6%
rise amid intensified efforts by opponents of France's National
Rally (RN) to prevent the far-right party from gaining power.
Weak U.S. data boosted sentiment on rate cuts as first-time
applications for U.S. unemployment benefits increased last week,
indicating a cooling labour market.
German industrial orders fell unexpectedly in May, declining
by 1.6% on the previous month on a seasonally and calendar
adjusted basis.
Among individual movers, UK's Smith & Nephew SN.L rose
6.3% after activist investor Cevian Capital disclosed a 5% stake
in the medical equipment maker.
Redcare Pharmacy RDC.DE surged 10.4% after the German
pharmaceutical retailer posted a 33% jump in second-quarter
preliminary sales.
On the flip side, Roche ROG.S dropped 2.2% after it
announced plans to halt a trial for its experimental lung cancer
drug due to lackluster results.
France's Pluxee PLX.PA fell as much as 10% after the
voucher and benefits company reported weaker-than-expected
third-quarter sales in Europe on Wednesday.
Sweden's Ericsson ERICb.ST slipped 0.9% after the telecoms
equipment maker recorded another impairment charge of 11.4
billion Swedish crowns ($1.09 billion) in the second quarter of
2024.
Meanwhile, comments by European Central Bank officials
Philip Lane, Elizabeth McCaul and Piero Cipollone will be on
investors' radar later in the day for more clues on the central
bank's future path of interest rates.
Trading volumes are expected to be low on account of a
public holiday in the United States.
(Reporting by Jesus Calero in Gdansk and Shubham Batra in
Bengaluru; Editing by Mrigank Dhaniwala and Varun H K)
((Shubham.Batra@thomsonreuters.com;))