European Shares Extend Gains For Third Day On China Optimism

(RTTNews) - European stocks advanced on Tuesday as China cut quarantine time for international travelers in big step toward easing Covid-19 controls and ECB President Christine Lagarde played down fears of a recession in the euro zone.

"We have markedly revised down our forecasts for growth in the next two years. But we are still expecting positive growth rates due to the domestic buffers against the loss of growth momentum," Lagarde said at the Sintra Forum.

The pan European Stoxx 600 rose 0.8 percent to 418.58, extending gains for a third straight session despite weak data from Germany and France.

The German DAX gained 0.9 percent, France's CAC 40 index climbed 1.4 percent and the U.K.'s FTSE 100 was up 1.1 percent.

Germany's consumer confidence dropped to a new record low in July as consumers see the risk of the economy slipping to a recession, survey results from the market research group GfK showed.

The consumer confidence index fell to -27.4 in July from revised -26.2 in June. The score was forecast to fall to -27.6.

France's consumer confidence weakened for the sixth straight month in June to reach its lowest level in nearly nine years, monthly survey results from the statistical office Insee revealed. The consumer confidence index dropped to 82 in June from 85 in May.

Volkswagen gained 1.3 percent. The German automaker is close to selling a minority stake in its U.S. electric-vehicle charge business to an arm of Siemens, the Wall Street Journal reported.

Akzo Nobel NV fell 2.5 percent after the Dutch chemicals company named Gregoire Poux-Guillaume as its new chief executive.

Luxury retailers Kering, LVMH and Richemont soared 2-4 percent on optimism that Chinese demand will improve.

Valeo surged 4.3 percent after the car parts company won a major contract from BMW.

Miners Anglo American, Antofagasta and Glencore rallied 1-3 percent in London as iron ore futures gained on optimism over improved demand from China, the world's second-biggest economy and top metals consumer.

Oil & gas firm BP Plc and Shell both jumped around 3 percent after Brent crude prices rose above $116 per barrel.

Energy services firm Petrofac gained nearly 4 percent. The company said it expects revenue for its Asset Solutions unit to be higher in the second half of the year, supported by strong order intake in the year to date.