Europe open: Shares up on easing optimism, UK employment data
European stocks started the session in positive mood on Tuesday as investors were cheered by the relaxation of Covid-19 restrictions and a falling UK unemployment rate.
The pan-European STOXX 600 index rose 0.75% by 0743 GMT, 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".
Shares in embattled German leasing business Grenke soared 15% 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 surged on Tuesday after the software company said its first-half performance was set to be ahead of market views.
Sonova Holding surged 8.5% 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 rose 4% 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.
Vodafone shares fell 6.6% after the UK mobile operator reported a 1.2% drop in full-year adjusted core earnings as Covid-19 hit roaming revenue.