(Reuters) – European stocks rose on Thursday as travel stocks snapped a four day losing streak after Ryanair lifted its long-term traffic forecast, offsetting concerns about China’s slowing economy that dragged down miners.
The pan-European STOXX 600 index climbed 0.4%, bouncing off a six-week closing low hit in the previous session.
Travel & leisure stocks rose 3.4%.
Europe’s largest low cost carrier Ryanair jumped 7.9% after it raised its long-term traffic forecast. Rivals easyJet, British Airways-owner IAG and Wizz Air gained between 3.9% and 7%.
“It’s been a slightly better day for markets in Europe, shrugging off a weak Asia handoff, with some decent gains for travel and leisure, which has enjoyed a respite after Ryanair’s announcement,” said Michael Hewson, chief market analyst at CMC Markets UK.
While Asian stocks came under pressure from concerns about China’s economy and the fallout from debt-ridden developer China Evergrande Group’s financial troubles, European stocks were on a firm footing as strong U.S. data reinforced optimism about a recovery in the world’s largest economy. [.SS] [.N]
Miners including Rio Tinto, Anglo American and BHP Group were among the top drags as metal prices fell after China reiterated plans to release more metals from its reserves. [MET/L]
German automotive supplier Continental AG fell 6.2% to the bottom of STOXX 600 after the spin-off of its unit Vitesco.
The utilities index was flat after a near 3% fall on Wednesday. Spain passed emergency measures earlier this week to reduce energy bills, raising concerns over the hit to utilities’ profits.
Spain’s Endesa and Iberdrola extended losses for a third day to fall to their lowest since 2020.
Italy is also looking to introduce short-term measures to offset the expected rise in retail power prices, a minister said in a radio interview.
“Stocks in the sector are suffering from the risks of regulatory intervention, as in Spain, and it will be necessary to see how other governments in Europe will intervene,” Equita analysts said.
“Current prices do not reflect high energy and gas prices.”
Paris Match magazine owner Lagardere surged 19.5% after media group Vivendi said it would buy another stake in the company, paving the way for a full takeover.
British fashion brand Superdry jumped 14.9% after it forecast a recovery in full-year 2022 revenue.
Source: Read Full Article