European Shares Rise as Hammerson Unveils Share Buyback Program

By Investors Hub

European stocks followed their Asian peers higher on Tuesday after the State Council, China’s cabinet, said the country would adopt a more ‘vigorous’ fiscal policy to support the economy.

While the German DAX Index has surged up by 1.5 percent, the French CAC 40 Index is up by 1 percent and the UK’s FTSE 100 Index is up by 0.9 percent.

Banks and mining stocks are at the forefront as bond yields inched higher on speculation of a shift in BoJ policy and copper prices rebounded on concerns over possible disruptions to supply.

In economic news, Eurozone private sector activity growth weakened in July, flash survey results from IHS Markit revealed. The composite output index dropped to 54.3 from 54.9 in June. Analysts expected the score to fall slightly to 54.8.

UBS has jumped after the Swiss bank reported a 9 percent rise in second-quarter profits and said rising interest rates in the US will further support its global wealth management unit.

Real estate firm Hammerson has also risen in London after launching a share buyback program.

BT Group has also moved higher after the British telecom firm said that the creation of a more independent Openreach Limited is nearing completion.

Edenred shares have jumped in Paris. The French prepaid meal voucher and card provider group forecast higher annual profits after delivering strong growth in the first half of the year.