FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 4, 2020. REUTERS/Staff
May 5, 2020
By Sruthi Shankar
(Reuters) – European stocks rose on Tuesday as a jump in shares of French energy major Total and a slew of positive earnings reports added to optimism over the easing of lockdowns by major economies.
The pan-European index <.STOXX> was up 1.3% after paring some gains as Germany’s top court said the ECB’s bond purchases scheme partially violates the constitution but does not violate the prohibition of monetary financing of member states.
German shares <.GDAXI> also lost ground to trade near session lows.
Total SA <TOTF.PA> gained 6.8% after it maintained its dividend despite reporting a sharp fall in first-quarter net adjusted profit due to a plunge in oil prices.
Europe’s oil and gas sector <.SXEP> also got a boost from surging crude prices on expectations that fuel demand will begin to recover as some U.S. states as well as countries in Europe and Asia start to ease coronavirus lockdown measures.
“There is some hope that things are starting to get back to normal, and the rally in oil is helping some confidence back in the markets,” said Keith Temperton, a sales trader at Tavira Securities.
European shares are hovering near two-month highs, boosted by massive stimulus programs by global central banks and governments, while slowing coronavirus cases have driven many economies to ease their lockdown measures.
Among other companies that reported, German meal-kit delivery firm HelloFresh <HFGG.DE> surged 9% after it raised its 2020 forecast as continued lockdowns boosted its first-quarter performance in international markets.
Copenhagen-based jewellery maker Pandora <PNDORA.CO> jumped 5.7% after saying it was encouraged by higher online sales and the reopening of stores in Germany and some other countries.
Meanwhile, German residential real estate company Vonovia <VNAn.DE> rose 4.9% as it stood by its profit forecast for 2020, saying it expected a very small, temporary reduction in rental payments.
Among decliners, Ferrari NV <RACE.MI> slipped 2% after data showed Italian car registrations fell 97.55% in April. The company said it still expects to make more than $1 billion in core profit this year despite the coronavirus crisis.
German fashion house Hugo Boss <BOSSn.DE> dropped nearly 4% as it expects the impact of the coronavirus pandemic to get worse before it gets better after reporting a 17% fall in first-quarter sales.
(Reporting by Sruthi Shankar in Bengaluru and Joice Alves in London; Editing by Anil D’Silva)
