European stocks rallied on Tuesday, taking heart from signs of slowing spread of the coronavirus and the possibility that a new round of U.S. stimulus will get enacted.
Up 0.3% on Monday, the Stoxx Europe 600
Travel and leisure plays led the rise, with gainers including International Airlines Group
cruise operator Carnival
and InterContinental Hotels
which reported a loss and said it wouldn’t pay a dividend.
each registered strong gains, fueling gains for the German DAX
The French CAC 40
and U.K. FTSE 100
The coronavirus picture in the U.S. seems to be improving. According to The New York Times tracker, new cases have fallen 18% over the last 14 days and new deaths have dropped 6%.
The gains in markets comes amid signs the executive order President Donald Trump signed to extend jobless benefits won’t actually reach the hands of unemployed Americans. The extra $400 per week Trump’s order provides is contingent on states paying $100, and New York State Gov. Andrew Cuomo said no one in his state would receive the extra $400. But officials in the White House and Congress say they’re open to resuming talks on a stimulus package.
“The clouds of uncertainly are starting to part, and a ray of optimism is breaking through that additions to the U.S. stimulus package are looking more promising as both sides are set to rejoin the negotiating table,” said Stephen Innes, chief global markets strategist at AxiCorp.
The latest labor market data showed the U.K. unemployment rate stayed flat at 3.9% in the three months to June, reflecting people not seeking jobs as well as 7.5 million who are either furloughed or temporarily away their job.
Of companies in the spotlight, HelloFresh
gained 2% as the German prepared food kit maker raised its financial guidance for the third time this year. The stock has soared 163% this year.