European stocks gain as economies reopen from lockdown

European stocks closed higher on Tuesday, shrugging off uncertainty over regional bond purchases as a swathe of positive earnings and an easing of coronavirus lockdown restrictions in some countries caused some optimism.

Dublin

Dublin’s Iseq all-share index was an underperformer, however, dipping by 0.13 per cent on Tuesday with those stocks exposed to an extended lockdown faring the worst.

Dalata Hotel Group shed 4.51 per cent to close down at €2.64 on the day. On Friday evening, the Government published its road map to reopen the Republic's economy. Under the plan, hotels will remain closed until toward the end of July.

And while the road map detailed a prolonged shutdown for businesses in the hospitality sector, it was more positive for those in the construction industry. Insulation maker Kingspan was among the gainers on the day, rising 3.36 per cent to €46.10.

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European stocks rise as banks and oil stocks lead gains

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European stocks gain as economies reopen from lockdown

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Oil price rebound lifts European shares

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On the same day that Germany's constitutional court called for the European Central Bank to review its vast purchases of public sector debt, banking stocks lost ground. AIB was the biggest loser of the State's pillar banks, declining by 3.5 per cent to €1.13. Bank of Ireland shed 1.85 per cent of its value to close at €1.69.

London

The FTSE 100 ended the day up 1.7 per cent as major producers BP and Shell notched up strong wins.

In company news, shares were remarkably unchanged as Workwear group Johnson Service said it lost 97 per cent of its sales in the hospitality sector last month as restaurants and hotels shut down. The company's shares lost 0.3 per cent of their value.

It was very different for Air Partner, whose shares soared by 27 per cent after it reported a "record month" in April. The company said that, unlike a struggling travel industry, it had been boosted by repatriation flights and moving vital medical equipment between countries.

Wizz Air also saw a slight rise, 0.4 per cent, after saying it would launch six new routes serving Luton Airport from next month.

Housing services group Mears jumped 4 per cent after bosses said operating losses during the lockdown will be "modest", even though the company moved to an "emergency only" service.

Europe

The pan-European Stoxx 600 index closed about 2.2 per cent higher.

After the German court's ruling on the ECB's stimulus scheme, German shares rose 2.5 per cent while shares in Italy, whose debt is particularly vulnerable to changes in the ECB's bond-buying scheme, added 2 per cent.

Total gained 7.9 per cent after it maintained its dividend despite reporting a sharp fall in first-quarter net adjusted profit due to a plunge in oil prices.

Spain's Repsol topped the Stoxx 600 after its first-quarter profit beat expectations.

German meal-kit delivery company HelloFresh surged nearly 10 per cent after it raised its 2020 forecast – continued lockdowns have boosted its first-quarter performance in international markets.

Copenhagen-based jewellery maker Pandora jumped 8.3 per cent after saying it was encouraged by higher online sales and the reopening of stores in Germany and some other countries.

Among decliners, Swedish real estate company Samhallsbyggnadsbolaget fell 18 per cent and was at the bottom of the Stoxx 600 after the company said its chief executive, Ilija Batljan, had been detained for allegedly violating market abuse regulations.

New York

Wall Street’s main indexes jumped on Tuesday as a recovery in oil prices lifted battered energy stocks.

Market-leading growth stocks such as Microsoft, Amazon. com and Apple rose for a second day, helping offset concerns about the latest US-China spat over the origin of the novel coronavirus.

Apple supplier Skyworks Solutions jumped 5.9 per cent after reporting upbeat quarterly results, but warned of a hit from the pandemic in the current quarter. Pfizer rose 3 per cent after announcing that a venture with its German partner had started delivering doses of its experimental coronavirus vaccines for human testing in the United States. – Additional reporting: Reuters/PA