A member of staff wearing a protective face mask at the Holiday Inn Whitechapel hotel, operated by InterContinental Hotels Group Plc (IHG), cleans a perspex screen ahead of the hotel’s reopening for general bookings in London, U.K., on Friday, July 3, 2020.
Chris Ratcliffe/Bloomberg News
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 SXXP, +1.77% rose 1.7%.
Travel and leisure plays led the rise, with gainers including International Airlines Group IAG, +6.34%, cruise operator Carnival CCL, +4.23% and InterContinental Hotels IHG, +3.84%, which reported a loss and said it wouldn’t pay a dividend.
Automakers BMW BMW3, +4.41%, Volkswagen VOW3, +3.51% and Daimler DAI, +2.85% each registered strong gains, fueling gains for the German DAX DAX, +2.16%. The French CAC 40 PX1, +2.24% and U.K. FTSE 100 UKX, +1.98% also jumped.
After the 356-point gain for the Dow industrials DJIA, +1.30%, futures YM00, +0.95% were pointing to further gains on Tuesday.
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 HFG, +3.15% 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.
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