European stocks rebounded on Friday as Treasuries halted an eight-day rally fueled by concerns about global growth amid the spread of Covid-19 variants.
U.S. 10-year Treasury yields were up 3.8 bps after having fallen 14 basis points in the first four days of the week.
German 10-year Bund yield and other major euro zone government bonds, such as those of France and the Netherlands, also saw yields tick up today.
Focus now shifts to the meeting of G-20 finance ministers and central bank governors in Venice, Italy today and tomorrow, with global tax reform on top of the agenda.
The pan European Stoxx 600 climbed 1.1 percent to 456.58 after plunging 1.7 percent on Thursday. The German DAX rose about 1 percent, France’s CAC 40 index jumped 1.9 percent and the U.K.’s FTSE 100 added 0.9 percent.
Cyclicals were back in favor, with banks and automakers posting sharper gains.
French geoscience technology company CGG advanced 2.3 percent. The company said its planned asset monetization and sale of businesses held for sale are progressing well and are on track to close in early fourth quarter.
Plane maker Airbus surged 4.5 percent after it reported a 52 percent jump in jet deliveries in the first half of 2021.
Miners rebounded, with Anglo American, Antofagasta and Glencore all rising more than 2 percent in London.
Travel-related stocks such as easyJet, Ryanair and British Airways-owner IAG were up around 3 percent after the government said that from July 19, fully vaccinated U.K. residents and children will no longer have to quarantine on their return to England.
Aircraft and car parts supplier Senior advanced 1.2 percent after raising its guidance for the financial year.
Victrex, a supplier of high performance polymer solutions, gained 1.4 percent after its third-quarter Group revenue climbed 37 percent from last year.
Luxury goods group Burberry jumped 3.4 percent after Goldman Sachs upgraded the stock to “buy.”
French rival LVMH Moët Hennessy Louis Vuitton was up 3.2 percent and Hermès International added 2.4 percent.
Investors shrugged off data showing the U.K. economy expanded at a slower pace in May despite an easing of COVID-19-related restrictions.
Gross domestic product grew 0.8 percent month-on-month in May, but slower than the revised 2 percent growth posted in April and the economists’ forecast of +1.5 percent. Nonetheless, GDP rose for the fourth straight month.
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