Major European stock markets are moving higher on Tuesday, as the risk-taking investment mood appears to be recovering, albeit temporarily, following China’s announcements that it is easing restrictions on Covid-19 and reducing quarantine time for overseas travelers.
The pan-European index Stoxx 600 strengthened by 0.36%, with the core resources sector jumping 3.3%, leading profits, with almost all major industries and stock markets in positive territory. The other pan-European index, Eurostoxx 50gains 0.53%.
The German DAX records an increase of 0.48%, with the French CAC 40 to gain 0.74%, while the British FTSE 100 records gains of 0.85%.
In the periphery, the Italian FTSE MIB gains 0.71%, while the Spanish IBEX 35 marks an increase of 0.63%.
Profits in Europe are moving symmetrically with those in the Asia-Pacific region, which returned positively in the afternoon trading, after the announcement of the easing of restrictive measures in China, which indicate that the worst is now behind the second largest economy in the world.
The G7 Summit in Germany concludes overnight, with the leaders of the world’s 7 traditional major industrial powers reaffirming their support for Ukraine, noting that they will continue to support the country “for as long as necessary”.
In Spain, the curtain of the NATO summit is opening – again overnight – with the war in Ukraine at the top of the agenda. Alliance Secretary-General Jens Stoltenberg said Monday that NATO would increase its rapid reaction force, increasing its troop numbers from 40,000 to 300,000.
The GfK consumer confidence index in Germany for July stood at -27.4, slightly better than the forecast for -27.7, but deep in negative territory.