Bulletin
Investor Alert

Europe Markets Archives | Email alerts

July 9, 2021, 10:08 a.m. EDT

European stocks rebound from sharp selloff

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

Investors were getting a breather Friday from a recent selloff driven by concerns that a pandemic resurgence could complicate a global economic recovery, with European stocks rebounding along with U.S. stocks as bond yields stabilized.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.71% rose 0.7% to 454.69, after a drop of 1.7% on Thursday. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.75% rose 0.9%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.74% gained 1.6% and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.02% added 0.4%.

U.S. stocks /zigman2/quotes/210599714/realtime SPX -1.22% /zigman2/quotes/210598065/realtime DJIA -0.19% opened higher, though the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -2.28% was barely higher, following Thursday’s session in which all three indexes booked their worst daily percentage drops since June 18 over concerns that the global economy recovery could by stymied by resurgent COVID-19 cases in some countries.

Concerns about a slower recovery and fading fears of high inflation drove a sharp drop in bond yields, with the 10-year U.S. Treasury yield  /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -0.10% hitting 1.25% at one point on Thursday, its lowest since February. But that yield was back up to nearly 1.34% on Friday.

Japan declared a state of emergency in Tokyo that would continue through the Olympics, amid concerns a COVID-19 surge could multiply during the Games. Cases are rising across parts of the U.S. and Europe, with the U.K. and Portugal in particular struggling amid a wave of cases driven by the delta variant of coronavirus.

Soccer’s Euro 2020 final between Italy and England will take place on Sunday. More than 60,000 in the U.K. attended the semifinal between England and Denmark earlier this week. Italy will also reportedly fly in 1,000 fans who will be travel in and out of the country on Sunday and will be segregated in the stands and required to quarantine upon their return.

G-20 finance ministers and central bank governors will meet in Venice , Italy on Friday and Saturday to discuss tax reform and progress on recoveries amid the pandemic.

Data out on Friday showed the U.K. economy slowed in May, after a sharp rise in April as coronavirus restrictions eased and the economy got a boost. Fueled by services, gross domestic product grew 0.8% on the month,  the Office for National Statistics said. April’s growth was revised down to 2% from a prior estimate of 2.3%.

Banks and pharmaceutical stocks drove some of the gains in Europe, with BNP Paribas /zigman2/quotes/206351084/delayed FR:BNP +3.26% shares up 2%, Novartis /zigman2/quotes/203243705/composite NVS -0.69% /zigman2/quotes/203286410/delayed CH:NOVN +0.61% shares up 1.8% and those of Roche Holding /zigman2/quotes/206324342/delayed CH:ROG +0.42% up 0.8%.

Luxury goods makers were on the rise, with LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/206499835/delayed IT:LVMH -0.49% up 3.4%, Burberry /zigman2/quotes/205386705/delayed UK:BRBY -1.27% 3% higher and Hermès International /zigman2/quotes/200522137/delayed FR:RMS -0.42% rising more 2.7%.

Energy companies reversed earlier losses, as oil prices /zigman2/quotes/211629951/delayed CL.1 -0.49% climbed in an overall asset bounce. Shares of TotalEnergies /zigman2/quotes/201824152/composite TTE +1.75% /zigman2/quotes/206172043/delayed FR:TTE +2.48% and Royal Dutch Shell /zigman2/quotes/205095589/composite RDS.A +3.63% /zigman2/quotes/206428183/delayed UK:RDSA +3.64% and BP rose 0.8% each.

Deal news drove shares of Vectura Group 13% higher. Philip Morris International /zigman2/quotes/201611010/composite PM +1.55% said Friday that its subsidiary PMI Global Services has agreed to bid for the U.K. maker of inhaled therapies for the treatment of respiratory diseases in a deal valued at 1.05 billion pounds ($1.45 billion) in cash.

The acquisition is part of Philip Morris’s expansion into products beyond tobacco and nicotine, the company said.

Automakers got a lift after Volkswagen released preliminary results Friday afternoon, showing that it swung to an operating profit of around 11 billion euros ($13.03 billion) for the first half . It said deliveries to customers continued to recover, leading to strong group turnover. It added that global semiconductor bottlenecks had shifted and will impact operations in the second half.

Shares of Volkswagen /zigman2/quotes/207754408/delayed DE:VOWB +1.72% /zigman2/quotes/203434344/delayed XE:VOW3 +0.99% surged more than 5%, Stellantis /zigman2/quotes/204248628/composite STLA -3.49% shares and BMW shares /zigman2/quotes/202432319/delayed XE:BMW +0.66% rose around 3% each.

/zigman2/quotes/210599654/delayed
XX : STOXX
459.59
+3.23 +0.71%
Volume: 0.00
Jan. 25, 2022 11:03p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,123.87
+112.74 +0.75%
Volume: 86,066
Jan. 25, 2022 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,837.96
+50.17 +0.74%
Volume: 98,212
Jan. 25, 2022 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,371.46
+74.31 +1.02%
Volume: 788,364
Jan. 25, 2022 4:51p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,356.45
-53.68 -1.22%
Volume: 3.06B
Jan. 25, 2022 5:04p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,297.73
-66.77 -0.19%
Volume: 522.19M
Jan. 25, 2022 5:04p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
13,539.29
-315.83 -2.28%
Volume: 4.17M
Jan. 25, 2022 5:16p
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.77
-0.0017 -0.10%
Volume: 0.00
Jan. 26, 2022 12:38a
loading...
/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
62.06
+1.96 +3.26%
Volume: 3.90M
Jan. 25, 2022 5:35p
P/E Ratio
10.04
Dividend Yield
4.29%
Market Cap
€74.14 billion
Rev. per Employee
€524,808
loading...
/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 84.54
-0.59 -0.69%
Volume: 2.93M
Jan. 25, 2022 4:00p
P/E Ratio
19.51
Dividend Yield
2.46%
Market Cap
$186.45 billion
Rev. per Employee
$483,647
loading...
/zigman2/quotes/203286410/delayed
CH : Switzerland: SWX
CHF 77.22
+0.47 +0.61%
Volume: 5.81M
Jan. 25, 2022 5:30p
P/E Ratio
19.58
Dividend Yield
3.89%
Market Cap
CHF170.71 billion
Rev. per Employee
CHF439,977
loading...
/zigman2/quotes/206324342/delayed
CH : Switzerland: SWX
CHF 346.20
+1.45 +0.42%
Volume: 1.35M
Jan. 25, 2022 5:30p
P/E Ratio
21.31
Dividend Yield
2.63%
Market Cap
CHF298.58 billion
Rev. per Employee
CHF588,922
loading...
/zigman2/quotes/206499835/delayed
IT : Italy: Milan
666.80
-3.30 -0.49%
Volume: 821.00
Jan. 25, 2022 5:36p
P/E Ratio
35.50
Dividend Yield
1.05%
Market Cap
€333.91 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,862.00 p
-24.00 -1.27%
Volume: 1.18M
Jan. 25, 2022 4:35p
P/E Ratio
16.02
Dividend Yield
2.91%
Market Cap
£7.54 billion
Rev. per Employee
£276,993
loading...
/zigman2/quotes/200522137/delayed
FR : France: Euronext Paris
1,303.00
-5.50 -0.42%
Volume: 82,850
Jan. 25, 2022 5:35p
P/E Ratio
61.48
Dividend Yield
0.35%
Market Cap
€136.93 billion
Rev. per Employee
€490,151
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 85.18
-0.42 -0.49%
Volume: 19,098
Jan. 26, 2022 12:28a
loading...
/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 56.38
+0.97 +1.75%
Volume: 2.66M
Jan. 25, 2022 4:00p
P/E Ratio
13.47
Dividend Yield
N/A
Market Cap
$143.07 billion
Rev. per Employee
$1.53M
loading...
/zigman2/quotes/206172043/delayed
FR : France: Euronext Paris
49.11
+1.19 +2.48%
Volume: 8.18M
Jan. 25, 2022 5:38p
P/E Ratio
14.00
Dividend Yield
5.38%
Market Cap
€126.51 billion
Rev. per Employee
€1.28M
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 49.74
+1.74 +3.63%
Volume: 5.85M
Jan. 25, 2022 4:00p
P/E Ratio
42.37
Dividend Yield
2.55%
Market Cap
$179.70 billion
Rev. per Employee
$2.58M
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,810.80
+63.60 +3.64%
Volume: 8.95M
Jan. 25, 2022 4:35p
P/E Ratio
44.76
Dividend Yield
0.04%
Market Cap
£133.47 billion
Rev. per Employee
£1.88M
loading...
/zigman2/quotes/201611010/composite
US : U.S.: NYSE
$ 102.14
+1.56 +1.55%
Volume: 6.01M
Jan. 25, 2022 4:00p
P/E Ratio
17.76
Dividend Yield
4.90%
Market Cap
$156.59 billion
Rev. per Employee
$432,704
loading...
/zigman2/quotes/207754408/delayed
DE : Germany: Frankfurt
17.70
+0.30 +1.72%
Volume: 0.00
Jan. 25, 2022 7:59p
P/E Ratio
4.98
Dividend Yield
1.86%
Market Cap
€118.65 billion
Rev. per Employee
€383,350
loading...
/zigman2/quotes/203434344/delayed
XE : Germany: Xetra
178.26
+1.74 +0.99%
Volume: 1.14M
Jan. 25, 2022 6:30p
P/E Ratio
5.02
Dividend Yield
2.73%
Market Cap
€108.52 billion
Rev. per Employee
€383,350
loading...
/zigman2/quotes/204248628/composite
US : U.S.: NYSE
$ 18.80
-0.68 -3.49%
Volume: 6.37M
Jan. 25, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$59.47 billion
Rev. per Employee
$521,383
loading...
/zigman2/quotes/202432319/delayed
XE : Germany: Xetra
92.08
+0.60 +0.66%
Volume: 1.31M
Jan. 25, 2022 6:30p
P/E Ratio
5.14
Dividend Yield
2.06%
Market Cap
€59.39 billion
Rev. per Employee
€930,313
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.