Major European Markets Reverse Early Losses, Close On Firm Note

(RTTNews) - European stocks reversed earlier losses and the major markets in the region closed on a positive note on Tuesday despite rising concerns about rising Covid case counts in several regions and China and talks of another round of stringent lockdowns in the country.

Worries about a worsening energy crisis in Europe and disappointing economic data from the region too weighed on stocks earlier in the session.

The mood in the markets remained cautious with investors looking ahead to the crucial U.S. inflation data, due on Wednesday.

The pan European Stoxx 600 gained 0.49%. The U.K.'s FTSE 100 advanced 0.18%, Germany's DAX climbed 0.57% and France's CAC 40 surged up 0.8%, while Switzerland's SMI closed with a gain of 0.39%.

Other markets in the region closed on a mixed note. Finland, Greece, Iceland, Ireland, Netherlands, Sweden and Turkey closed higher.

Belgium, Czech Republic, Poland, Portugal, Russia and Spain ended weak, while Austria, Denmark and Norway closed flat.

In the UK market, IAG climbed 6.5%. Coca-Cola HBC, Melrose Industries, ICP, St. James Place, Rolls-Royce Holdings, M&G, ABRDN, Kingfisher, 3I Group, BT Group, Smith (DS) and Smurfit Kappa Group gained 2 to 4%.

Centrica and SSE both closed sharply higher after the government announced the 25% windfall tax that was imposed on the oil sector will not be extended to the profits of electricity firms.

Dechra Pharmaceuticals, Aveva Group, BP, Land Securities Group, British Land, Shell, Endeavour Mining and GSK ended sharply lower.

In the German market, MTU Aero Engines surged nearly 4%. BASF, HeidelbergCement, Deutsche Boerse, Covestro, Linde and Zalando gained 1 to 3%.

Sartorius ended more than 4% down. Symrise, Qiagen, SAP and Adidas were the other prominent losers.

In the French market, Airbus Group rallied nearly 4.5%. Hermes International, Air France-KLM, Faurecia and Safran gained more than 3%. L'Oreal, WorldLine, ArcelorMittal, Publicis Groupe and Danone ended stronger by 2 to 2.8%.

Thales Group gained more than 2%. The designer and builder of electrical systems announced its agreement to acquire OneWelcome, a Dutch provider of Customer Identity and Access Management for a total consideration of 100 million euros.

The transaction is expected to be completed during the second half of 2022, subject to regulatory approvals and other customary closing conditions.

Atos, Vivendi, BNP Paribas, Capgemini and Michelin ended notably lower.

On the data front, expectations for economic growth in Germany slumped in July, data from the ZEW economic research institute showed. The corresponding index fell to minus 53.8 from minus 28.0 in June.

Separate data from the British Retail Consortium and the advisory services firm KPMG revealed that U.K. retail sales decreased for the third consecutive month in June.

Like-for-like sales decreased 1.3% percent on a yearly basis in June while overall sales were down 1%.