Europe midday: Shares up, but off morning highs, on reopening optimism
European stocks were still up at midday on Tuesday, but off morning highs, as investors were cheered by the relaxation of Covid-19 restrictions and a falling UK unemployment rate.
The pan-European STOXX 600 index rose 0.37%, just below record levels. The UK’s FTSE 100 was up 0.81%, while Germany’s DAX rose 0.8% to hit a record high, while Italy’s FTSE MIB added 0.8%.
Britain’s unemployment rate unexpectedly ticked lower in the first quarter despite the national lockdown, according to figures released by the Office for National Statistics on Tuesday.
The unemployment rate nudged down to 4.8% in the three months to March from 4.9% in February and versus expectations for it to be unchanged. Data suggested the jobs market has been broadly stable in recent months, "with some early signs of recovery".
Investors were also keeping close watch on developments in the US after last week's inflation scare the wake of last week’s inflation scare.
"Minutes from the last FOMC meeting due on Wednesday will be parsed for any kind of dissent," said Markets.com analyst Neil Wilson.
In equity news, shares in embattled German leasing business Grenke soared 20% to top the Stoxx index after the company late on Monday announced auditing firm KPMG has issued an unqualified audit opinion for its annual and consolidated financial statements as of December 31, 2020.
The company was in February told to correct its 2019 results after a special audit ordered by regulators uncovered a string of failings.
Micro Focus shares also surged after the software company said its first-half performance was set to be ahead of market views.
Sonova Holding rose almost 10% after the world’s biggest maker of hearing aids predicted strong growth this year due to a market recovery and new products.
Soft drinks maker Britvic was up as the firm reinstated its dividend, despite reporting a decline in first-half profit and revenue, as it hailed an encouraging start to the second half.
Iliad, the parent company of telecoms operator Free, fell nearly 10% after announcing the suspension of its 2021 operating cash flow target in France to reflect the planned acceleration of its 5G investment plan.
Vodafone shares fell 5.6% after the UK mobile operator reported a 1.2% drop in full-year adjusted core earnings as Covid-19 hit roaming revenue and handset sales.