Traders on the Frankfurt Stock Exchange on Monday. Photo: Reuters
(Reuters) – A car maker rise and strong European bank results have lifted Stoxx 600 index to a two-week high on Tuesday, as investors adjusted for political difficulties in Britain and Spain.
The European index has closed at its highest level since July 4, when the auto sector index rose by 3.8% in its strongest performance since early January.
France's French supply of ferry jumped 11.5%, while keeping its profit for the first half of the year, despite a fall in China-led production. Continental shares were 6.3 percent despite issuing a new profit warning on Monday, while Helen's competitor rose 6.8 percent.
Toby Clothier, Co-Director of Global Themedical Group at London's London Securities, "Industrial stocks are high because they are cheap and unpopular and none of them have enough numbers.
"There is some obvious change to things related to the economic cycle and cheap at the old standards – income and dividend yield."
After a sharp fall in May, concerns that corporate profits would be affected by a US dollar. There. And China's trade dispute, investors are re-buying on European and other stock markets in anticipation of easing monetary policy from major banks to stimulate growth.
The ECB could confirm the benchmark rate cut in September when it meets Thursday and the Federal Reserve is expected to cut rates by 25 basis points next week.
The European banking sector index, which has done less than most other sectors this year in anticipation of a rate cut, rose by 2 percent after Swiss bank UBS reported its second quarter results in nearly 10 years, rising 2.6 percent.
Prepared by Ahmed Alhami for the Arabic publication