European Shares Extend Rally On Stimulus Optimism

European stocks rose on Tuesday, with easing concerns about tight liquidity conditions in China, reports indicating progress in U.S. stimulus negotiations and signs of expanding vaccination programs boosting sentiment.

Investors await earnings from and Alphabet Inc later in the day for further direction.

The pan European Stoxx 600 climbed 1.2 percent to 405.62 after rallying 1.2 percent in the previous session. The German DAX gained 1.3 percent, France’s CAC 40 index jumped 1.8 percent and the U.K.’s FTSE 100 was up 0.8 percent.

Sweden’s Electrolux declined 1.4 percent despite the home alliance company posting higher than forecast fourth-quarter profit.

British oil major BP Plc tumbled 3.2 percent after its fourth-quarter profit missed the consensus view.

Airline EasyJet gained 2.4 percent and Ryanair Holding rallied 2.5 percent amid signs of the vaccination rollout picking up pace.

Online food delivery company Just Eat dropped 1.6 percent after it placed 1.1 billion euros of convertible bonds, consisting of two tranches.

IT consulting group Atos added 2.3 percent. The French company has decided to walk away from a potential deal to buy U.S. rival DXC Technology Co. after its earlier bid was rejected.

“The board of directors of Atos has unanimously determined not to pursue a potential transaction with DXC Technology,” the company said in a statement.

German chemicals company Wacker Chemie gained 0.9 percent after it swung to profit in 2020.

Fresenius Medical Care slumped 13 percent after the world’s No.1 kidney dialysis firm warned that profit will shrink this year.

Fresenius SE, the company that owns a third of Fresenius Medical, lost 5.7 percent despite achieving its sales and net income guidance for 2020.

In economic releases, French consumer prices climbed 0.6 percent year-on-year in January, after staying flat in December, provisional data from the statistical office Insee revealed.

This was the fastest increase since July, when prices grew 0.8 percent and also bigger than the economists’ forecast of 0.4 percent.

U.K. house prices climbed 6.4 percent on a yearly basis in January, but weaker than the 7.3 percent increase logged in December, data from the Nationwide Building Society showed. Economists had forecast an annual growth of 6.9 percent.

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