European stocks advanced on Thursday after U.S. President Joe Biden unveiled a sweeping $2.3 trillion spending plan that includes investments in roads, railways, broadband, clean energy and semiconductor manufacture.
Strong factory activity data out of the euro zone and the U.K. also boosted hopes for a swift economic recovery.
The pan European Stoxx 600 rose half a percent to 431.67 after declining 0.2 percent on Wednesday.
The German DAX gained 0.4 percent, France’s CAC 40 index inched up 0.3 percent and the U.K.’s FTSE 100 was up 0.8 percent.
Infineon Technologies and BE Semiconductor rose about 1 percent after TSMC, the world’s largest manufacturer of advanced semiconductors, unveiled capacity expansion plans and U.S. chipmaker Micron Technology Inc forecast third-quarter revenue above analysts’ forecasts.
Swiss lender Credit Suisse rose about 2.3 percent, but was on track for its worst week since March 2020 after warning of a multibillion dollar loss from the Archegos debacle.
Delivery Hero shares jumped 3.6 percent after Dutch tech investment company Prosus NV raised its stake in the online food ordering company.
Aareal Bank gained 1.4 percent after Petrus Advisers increased its shareholding in the banking company.
Vinci surged nearly 3 percent. The French construction company has signed an agreement to acquire ACS’s energy business, as part of its strategic move to create a global player in energy contracting and to develop renewables projects.
Clothing company Next Plc jumped 2.2 percent in London after upgrading its full-year guidance.
Food delivery firm Deliveroo’s shares were down 2 percent after plunging by as much as 30 percent on market debut the previous day.
In economic releases, the euro area manufacturing sector grew at the strongest pace in nearly 24 years of data collection, underpinned by strong production and orders, final data from IHS Markit showed.
The final factory Purchasing Managers’ Index rose to 62.5 in March from 57.9 in February. The flash reading was 62.4. Growth was broad-based across the region, with Germany and the Netherlands leading the way.
Elsewhere in the U.K., IHS Markit’s closely-watched purchasing managers’ index (PMI) scored 58.9 in March — a 121-month high and ahead of forecasts.
German retail sales grew for the first time in three months in February but the pace of expansion was slower than economists’ expected, data from Destatis revealed.
Retail sales rose 1.2 percent month-on-month in February, reversing a 6.5 percent fall in January. Economists had forecast sales to grow at a faster pace of 2 percent. This was the first increase in three months.
Source: Read Full Article