follow global sentiment as taper concerns ease

LONDON – European stocks rose slightly on Tuesday, as investors welcomed the full approval by the US Food and Drug Administration of the Pfizer / BioNTech vaccine and allayed concerns about the Federal Reserve’s impending cut.

The pan-European Stoxx 600 was up 0.1% by mid-morning, with travel and leisure stocks adding 1.5% to lead gains as banks slipped 0.5%.

Asia-Pacific stocks also rose in trading on Tuesday, following the example of the United States on Monday as the highly technical Nasdaq Composite hit record following vaccine approval. by the FDA. US equity futures edged higher in early pre-market trading on Tuesday.

The attention of global investors this week remains on the Fed’s Jackson Hole symposium, which takes place virtually Thursday, where policymakers could detail their plans to cut the $ 120 billion-per-month bond buying program. the central bank. Fed Chairman Jerome Powell will deliver a speech on Friday.

On the data front, German GDP rose 1.6% in the second quarter corrected for price, seasonal and calendar effects, the country’s Federal Statistics Office revealed on Thursday.

The expansion slightly exceeded the bureau’s previous estimate of 1.5% growth and was mainly due to consumer and government spending.

Investors continue to keep an eye on the situation in Afghanistan. Reuters reported that G-7 (Group of Seven) leaders are expected to demand a unified decision on Tuesday on whether or not to recognize Taliban leadership and impose sanctions on the organization.

In business news, Morrisons shareholder Legal & General said on Monday that a new $ 9.54 billion takeover bid for the UK supermarket chain of private equity group CD&R reflected more faithfully its true value.

Rival Sainsbury’s is also behind the speculation, with shares of the company soaring on Monday following a report that private equity firms could launch offers of more than $ 9.6 billion .

Sainsbury’s shares fell 1.6% early in Tuesday, with some investors apparently taking Monday’s 14% rise.

At the bottom of the European blue chip index, Swedish medical technology company Getinge slipped 2.5%.

At the top of the European blue chip index, UK retailer Marks & Spencer climbed 4.9% after target price hikes from Credit Suisse and Berenberg.

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