Europe midday: Investors bargain hunt; Wartsila powers ahead on Stena order

European stocks continued to rally on Tuesday, taking their cue from Asia with the US closed overnight for a holiday as investors went bargain hunting.

The pan-European STOXX 600 index rose 1.11% after the lows of last week as European, Swiss and UK interest rates were all increased.

‘A sprinkle of positivity is sugaring financial markets, masking the bitter taste induced as investors have been forced to assess the repercussions of surging inflation for the global economy,” said Hargreaves Lansdown analyst Susannah Streeter.

“A mini snap back from the deep sell off last week is expected on US indices, after traders return from the Juneteenth holiday. This follows a wave of buying in Europe on Monday and Asia today as investors stepped into stocks pushed lower in the recent rout.”

“The oil price has edged a little higher as concerns rise about supplies on world markets amid fresh efforts to stop Russia making revenues from crude. It comes after US Treasury Secretary Janet Yellen’s comments about working with allies to impose a price cap on Russian oil still being sold, with the aim of limiting flows into the country’s war chest.”

In equity news, shares in Finnish power provider Wartsila surged after the company announced its hybrid propulsion system would be used on hybrid ferries currently being built for Stena RoRo.

Italian defence company Leonardo rose on news it had agreed to merge its US unit with RADA Electronic Industries.

French industrial gas company Air Liquide climbed after striking its largest power purchase deal with Swedish utility Vattenfall.

French planemaker Airbus rose after British airline easyJet said it would buy 56 Airbus A320neo aircraft.

Ocado fell after the online supermarket said it had raised £575m in a share placing to fund its expansion. Just over 72.3m new ordinary shares were placed at 795p per share, with existing and new institutional investors. The placing price represents a discount of around 9.4% to the closing share price on Monday.

The online supermarket also raised an additional £3m selling shares to management and in an offer to retail investors.

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