Europe: Manufacturing rebound, US stimulus hopes lift stocks

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[BENGALURU] A modest expansion in euro zone manufacturing activity and hopes of fresh US stimulus lifted European stocks across the board on Monday, with automakers, miners and construction & material firms leading the gains. Read more at The Business Times.

"The growth in new orders for the Euro area outpaced production in July fuelling the optimism," Citi analyst Luis Costa wrote in a note."However, Germany's PMI has also reported deep cuts to employment raising concerns about the sustainability of the recent rebound."

Carmakers were the top gainers in Europe, up 3.8 per cent, after Ferrari trimmed its full-year earnings forecast but said its second quarter order book rose significantly versus a year ago.Europe's biggest lender by assets, HSBC, dropped 2.9 per cent after its half-yearly profits more than halved and the bank warned its bad debt charges could blow past a previous estimate to US$13 billion this year.

"While the Asian business remained resilient with limited impact from the US-China tensions and Global Markets had a solid quarter, pressure on Net Interest Margin intensified and the quarterly cost of risk increased further, driven by the economic impact of Covid-19," analysts at Morningstar wrote.Spanish stocks rose 1.

British engineer Senior Plc, which counts planemaker Boeing and heavy equipment maker Caterpillar as some of its biggest customers, tumbled 15.1 per cent as it shelved its interim dividend after swinging to a first-half loss.For daily updates on weekdays and specially selected content for the weekend. Subscribe to

 

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Europe: Stocks climb, London steady at open[LONDON] Eurozone stock markets climbed at the start of trading on Monday, while London was steady following a rally overnight in Tokyo. Read more at The Business Times.
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