European stocks rebounded on Thursday from a slump the previous day as investors took comfort in strong corporate earnings and chip merger talks, which helped allay inflation fears.
The pan-European Stoxx 600 index rose 1.3% after losing 1.5% in the previous session.
The overall Iseq index managed to rise 1.6 percent to 8,011.51, with Houses in Cairn by increasing by 1.6% to â¬ 1.04, and Flutter Entertainment gaining 3.5% to â¬ 146.25.
Ryanair lost 0.5% to â¬ 16.05, as rival Easyjet warned of a short-term lack of visibility due to delays in travel rules announcements affecting its ability to offer financial forecasts.
Kingspan jumped 2.4% to â¬ 75.82, as UK home improvement retailer Kingfisher highlighted an ongoing DIY boom by boosting its profit outlook.
Gains in industrials helped London’s Ftse 100 rebound on Thursday after its worst daily performance in a week, while Trainline shares fell to the bottom of the mid-cap index as the UK revamped its system railway.
The blue chip index rose 1%, with Experian 4.7 percent jump to the top of the index, a day after its optimistic quarterly earnings forecast.
Banks and healthcare stocks, including HSBC, Prudential, AstraZeneca and Smith & Nephew, were also among the biggest increases in the index.
Globally, stock markets rebounded temporarily and bitcoin rebounded more than 12% after one of its dramatic collapses, although rumors that the U.S. Federal Reserve was potentially considering scaling back measures. stimulus kept bond markets under pressure.
âWhile the markets don’t want central banks to start raising interest rates too soon, they are also clearly concerned about the escalating price hike and creating a situation in which policymakers don’t need to. ‘no choice but to act,’ said Russ Mold, chief investment officer at AJ Bell.
“The situation with Covid-19 is very different in emerging markets and it could pose a threat to commodity-focused companies on the Ftse, given that there is high demand from developing countries.”
Chip manufacturer listed in Oslo Nordic Semiconductor jumped 9.8 percent to the top of Stoxx 600 after an Italian daily reported that Franco-Italian rival STMicroelectronics was considering an offer to buy the company.
But, the chief financial officer of Nordic Semiconductor said the company had “no knowledge” of any takeover of STMicroelectronics.
A rebound in cyclical sectors linked to the economy amid reopening optimism and strong earnings pushed European stocks to record highs earlier this month, but inflation fears and rising volatility markets put the index on track for weekly losses.
In revenue, French conglomerate Bouygues edged up 0.3% after raising its full-year guidance for its telecommunications division and reporting a lower-than-expected baseline loss in the first quarter.
Deutsche Telekom added 2.5 percent to its medium-term core earnings outlook increase.
Major Wall Street indices were in rebound mode by mid-afternoon, after a three-day drop, helped by gains in tech stocks as smaller weekly jobless claims since the start of a pandemic recession have boosted morale.
Major Wall Street indices fell for the third session in a row on Wednesday after minutes from the Fed’s meeting last month indicated that many policymakers believed it would be appropriate to discuss easing support in times crisis during the next meetings if the strong economic momentum continues.
However, many analysts saw the statement as old news, as economic data since then has shown an unexpected slowdown in the labor market, stoking inflation concerns.
Ralph Lauren fell after forecasting sales for the full year below analyst estimates. Kohl’s collapsed after warning of a heavy blow to its full-year profit margin due to rising labor and shipping costs as well as selling fewer products at full price.
Cisco Systems has warned that supply chain issues will persist until the end of 2021 and forecast its profit for the current quarter to be lower than estimates. Shares of the company, however, reversed pre-market earnings to rise.