Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares hold near peaks; travel stocks shine on recovery prospects

Stock MarketsJun 09, 2021 17:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 8, 2021. REUTERS/Staff/File photo

By Sruthi Shankar and Shreyashi Sanyal

(Reuters) -European stocks remained near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and a U.S. inflation reading later this week.

The pan-European STOXX 600 index closed 0.1% higher, but stayed just short of a record high of 455.66 hit in the previous session.

Air France KLM, Lufthansa and British Airways owner IAG (LON:ICAG) climbed about 3% each after the U.S. Centers for Disease Control and Prevention (CDC) said it was easing travel recommendations on 110 countries and territories.

The wider travel and leisure index rose 0.9% as many European economies charted their way out of COVID-19 lockdowns.

Still, worries about rising inflation remained on investors' minds after data earlier showed China's factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices.

Big UK-listed miners such as Rio Tinto (LON:RIO), Anglo American (LON:AAL) and BHP Group fell more than 2% each, pulling down London's blue-chip FTSE 100 by 0.2%.

Among other main regional bourses, Germany's DAX fell 0.4% and France's CAC 40 rose 0.2%.

"Years like 2021 that have enjoyed strong gains for the first five months of the year don't tend to see much summer volatility, but instead drift slightly higher until Q4, so if history is any guide, 2021's quiet nature seems set to continue," said Chris Beauchamp, chief market analyst at IG.

The focus will be on the U.S. consumer prices data on Thursday, a reading that could influence market expectations on ahead of the U.S. Federal Reserve's meeting next week about the U.S. central bank tapering its massive bond purchases programme.

Despite an economic recovery underway and price pressures rising, the ECB is likely to say that it will maintain the current pace of bond purchases at its policy meeting on Thursday.

"Inflation is creating uncertainty about what central banks will do or say going forward," said Emmanuel Cau, European equity strategist at Barclays (LON:BARC).

"We think central banks will be patient, but we also believe that an adjustment in communication about inflation and policy changes will start in summer."

Spanish retail giant Inditex (MC:ITX) reversed early gains made after beating first-quarter net profit expectations. Its shares were down more than 2.2%.

French food group Danone slipped 0.9% after RBC downgraded the stock to "underperform".

Oslo-based salmon farmer SalMar fell 5.3% to the bottom of the STOXX 600 after it completed a private placement deal.

European shares hold near peaks; travel stocks shine on recovery prospects
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email