Europe open: Shares rally on German retail sales data

The pan-European Stoxx was up 0.97% with Germany’s DAX up 0.94% after official data revealed retail sales in the country rebounded in May as a gradual easing of Covid-19 restrictions supported consumer spending in Europe's largest economy.

Retail sales rose 4.2% month on month in real terms after a downwardly revised decline of 6.8% in April, The Federal Statistics Office said.

“European and global stock markets have enjoyed a strong run-up in the last six months as a combination of ultra-loose monetary policy, fiscal largesse and a vaccine-enabled reopening of economies allowed investors to look ahead to a brighter future for earnings and growth,” said Markets.com analyst Neil Wilson.

“Now there are risks on the horizon, but the market remains biased to the upside. That’s been evidenced by fresh record highs on Wall Street as the S&P 500 notched its fifth-straight record closing high.”

In equity news, shares in Aveva rose as the industrial software group reported a good start to the year as the set itself a target of 10% annual revenue growth over five years.

Associated British Foods was higher as the company said it expected annual profit to be in line with the year before after sales at Primark outstripped forecasts in the third quarter.

JD Sports Fashion shares gained after the company said it expected to make annual profits of at least £550m and would split the roles of chairman and chief executive before its 2022 annual general meeting.

Micro Focus International shares fell as the company reported adjusted first-half profit down 7.7% as the software group's revenue fell.

Fashion retailer H&M fell despite reporting better-than-expected second quarter profit as many of the company's stores reopened but earnings remained well below pre-pandemic levels.