Sept 16 (Reuters) – European stocks rose on Thursday as a rebound in travel stocks and overnight strength in Wall Street helped offset concerns about China’s slowing economy that dragged down miners.
The pan-European STOXX 600 index (.STOXX) rose 0.7%, bouncing off a six-week closing low hit in the previous session.
Europe’s largest low cost carrier Ryanair (RYA.I) surged 5.6% after it raised its long-term traffic forecast. Rivals easyJet (EZJ.L), British Airways-owner IAG and Wizz Air (WIZZ.L) gained almost 4% each. read more
While Asian stocks came under pressure from concerns about China’s economy and the fallout from debt-ridden developer China Evergrande Group’s (3333.HK) financial troubles, European stocks were on a firm footing as strong U.S. data on Wednesday reinforced optimism about a recovery in the world’s largest economy.
“Some decent corporate news and an upbeat report from the U.S. manufacturing sector outweighs continuing worries about China which is dragging down mining stocks and other firms with links to the Chinese economy,” AJ Bell Investment Director Russ Mould said.
German automotive supplier Continental AG (CONG.DE) fell 2.5% to the bottom of STOXX 600 after the spin-off of its unit Vitesco.
The utilities index (.SX6P) edged up 0.1% after a near 3% fall on Wednesday. Spain passed emergency measures earlier this week to reduce energy bills, raising concerns over the hit to utilities’ profits.
Italy is also looking to introduce short-term measures to offset the expected rise in retail power prices, a minister said in radio interview. read more
“Stocks in the sector are suffering from the risks of regulatory intervention, as in Spain, and it will be necessary to see how other governments in Europe will intervene,” Equita analysts said.
“Current prices do not reflect high energy and gas prices.”
British fashion brand Superdry (SDRY.L) jumped 14% after it forecast a recovery in full-year 2022 revenue.
Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta
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Mark White is the editor of the ProcurementNation, a Media Outlet covering supply chain and logistics issues. He joined The New York Times in 2007 as an commodities reporter, and most recently served as foreign-exchange editor in New York.