BRUSSELS, April 21 — European stocks rebounded today after their worst sell-off this year as optimism about a strong earnings season countered worries about a rapid rise in Covid-19 cases in some countries.
Tech stocks were the top gainers, up almost 1.0 per cent, with semiconductor equipment maker ASML jumping 4.5 per cent after it raised its full-year sales forecast, citing strong demand amid a global computer chip shortage.
Smaller rival ASM International rose 1.3 per cent on forecasting a rise in second-quarter orders.
The pan-European STOXX 600 index rose 0.7 per cent after a blistering seven-week rally ran into a bout of profit-taking on Tuesday, when it fell 1.9 per cent.
Some analysts pointed to concerns over the strength of a global economic recovery after India’s mounting coronavirus crisis and a global spike in Covid-19 cases.
“While the UK and the US may be moving towards re-opening, it’s not necessarily a straight line of recovery,” said Joshua Mahony, senior market analyst at IG. “What’s been happening in Brazil and India highlights the fact the virus is a massive issue.”
There were concerns about stretched valuations, with global equities trading at all-time highs and earnings expectations surging as vaccination drives and stimulus programmes support global recovery.
European earnings are expected to have risen a record 61 per cent in the first quarter of 2021, Refinitiv IBES data showed, placing Europe on course for a rare outperformance versus corporate America.
The world’s second-largest brewer Heineken NV gained 4 per cent after it reported better-than-expected quarterly sales, helped by increased beer sales in Africa and Asia.
French luxury goods group Kering was up 1.2 per cent after Gucci’s revenues rebounded strongly in the first quarter.
Oil & gas stocks got a boost despite weaker oil prices, as Deutsche Bank started coverage of stocks including Royal Dutch Shell and France’s Total with a “buy” rating.
Among decliners, Italian football club Juventus slumped 11.7 per cent after the breakaway European Super League was rocked by the departure of its six English clubs.
Dutch food delivery company Just Eat Takeaway fell 4.7 per cent after the Financial Times reported Uber Eats was planning to launch in Germany. — Reuters
