European shares opened on Tuesday in brighter mood following a strong performance in the US as regulators granted the Pfizer/BioNTech Covid vaccine full approval.
The pan-regional Stoxx 600 index was up 0.33% with all major continental bourses higher. Germany’s DAX rose 0.22% as the economy grew more than expected in the second quarter.
German gross domestic product grew an adjusted 1.6% on the quarter, the Federal Statistic Office said, up from its previous estimate of 1.5% and following a revised first quarter contraction of 2%.
Consumers dipped into record savings piled up during the winter lockdown as Covid-19 curbs were eased and the state maintained its stimulus programme.
“Investors have for the moment reverted to the glass half-full mentality, with buying interest in big tech propelling the Nasdaq to a record closing high,” said interactive investor head of markets Richard Hunter.
He added that sentiment was also buoyed by the Pfizer/BioNTech approval, prompting hopes that the level of inoculations could be accelerated as a result.
“The Delta variant has become a drag on economic recovery generally and measures to mitigate its impact will have positive effects,” Hunter said.
“Indeed, a third monthly drop in business activity in the US showed the effects which the variant is having, although more positive news came in the form of a rise in home sales.”
In equity news, shares in Marks & Spencer rose 2.9% after Berenberg and Credit Suisse raised their price targets.
