FRANKFURT, July 8 ― European stocks rose yesterday as commodity-linked stocks recovered from sharp falls in the previous session, while lower bond yields kept supporting highly valued technology shares.
Barclays in a note said they were adding tech exposure via software “given their later-cycle investment nature. Valuations are not cheap, but we expect earnings to be supportive.” A rally in beaten-down “value” stocks has helped push the STOXX 600 to record highs this year, but worries about the Delta variant of Covid-19 slowing economic recovery have put them behind “growth” stocks year-to-date.
Among other notable moves, French state-controlled power group EDF added 2 per cent after raising its 2021 core earnings target, given its new estimate for nuclear output in France.