Euro markets continue their upward trend with profits close to 2%

LAST UPDATE: 11.45

Major European stocks continued to rise strongly on Tuesday after gains in Monday’s session, with investors appearing less worried about the Omicron mutation as experts appear cautiously optimistic.

Markets in Europe are following the positive climate in Asia and the USA. Asian stock markets are moving strongly upwards with Hong Kong and Japan jumping 2%, while all three key New York Stock Exchange indices closed positively, with the Dow Jones industrial average up 600 points.

The climate was helped by reports from South Africa that the rapid spread of the new strain has not been accompanied by a sharp increase in hospitalizations. At the same time, the top US epidemiologist, Dr. Anthony Fauci, appeared reassuring in an interview with CNN, although he warned that “it is still too early to draw definitive conclusions.” However, the new mutation “does not seem to cause (disease) with a high degree of severity”, he continued. “So far, the signs of seriousness are a little encouraging,” he said.

Meanwhile, vaccine deliveries to EU countries are growing steadily and vaccination is progressing, with industry launching work to address new variants. The first estimates, moreover, are that existing vaccines also offer some protection against the latter mutation.

In this climate, the pan-European index Stoxx 600 adds 1.82% to 477 points, with the tech industry boosting by 3% and leading the profits.

In the individual dashboard, the German DAX adds 1.94% to 15,680 points, the French CAC 40 gains 2% to 7,000 points and o FTSE 100 is up 1.14% at 7,310 points moving, to the highest levels of the last 3 weeks.

In the periphery, the Italian index FTSE MIB gains 1.47% to 26,890 points and the Spaniard IBEX 35 adds 0.98% just over 8,500 units.

In the individual shares, the Belgian pharmaceutical company Galapagos rose 6.7% and is at the top of the Stoxx 600. On the other hand, the British polymer company Victrex fell by 6%, losing on Monday.

In macro of the day, German industrial production increased in October, despite the problems in the supply chain. Total industrial production rose 2.8% month-on-month in October in calendar-adjusted terms, according to Destatis.

In corporate news, Telecom italia SpA announced late Monday that has selected financial and legal advisors to evaluate the takeover bid from the American investment group KKR & Co. The Italian telecommunications group said Goldman Sachs and Lion Tree LLC would be its financial advisers, while Gatti Pavesi Bianchi Ludovici was appointed as legal advisor.

In addition, British American Tobacco PLC maintained revenue estimates. The tobacco company said it continues to expect revenue growth of more than 5% for 2021 in fixed currency, as it benefits from the strong revenue growth of the new category.