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European Stocks Sustain Upward Trend

By Investors Hub

European stocks have extended gains for the second day on Friday as positive private-sector employment and manufacturing data from the U.S. bolstered confidence in the world’s largest economy and fueled expectations for a Fed rate hike later this month.

While the German DAX Index has jumped by 1.3 percent, the French CAC 40 Index is up by 0.6 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.

Banks are trading broadly higher, with Deutsche Bank, BNP Paribas, Credit Agricole and Royal Bank of Scotland climbing 2-3 percent.

Spanish lender Banco Popular has jumped on bargain hunting after Thursday’s sell-off on solvency concerns. French drug maker Ipsen is also soaring after announcing a share buyback.

German automakers Daimler, BMW and Volkswagen are climbing after unveiling their monthly U.S. car sales figures. French automaker Renault and Peugeot have also moved higher.

Shares of Orexo AB have advanced after the Swedish pharmaceutical company announced that its OX-CLI project has advanced into clinical phase I, triggering a milestone payment of $2.5 million or about 23 million Swedish kronor from AstraZeneca plc.

On the other hand, B&M European Value Retail has fallen after its two largest shareholders sold a combined 12.5 percent stake in the discount chain.

In economic news, U.K. construction activity expanded at the fastest pace in 17 months in May, survey results from IHS Markit and Chartered Institute of Procurement & Supply showed. The headline PMI unexpectedly advanced to 56.0 from 53.1 in April.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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