European markets climb as more restrictions are lifted 

The pan-European Stoxx 600 climbed 1.4% by early afternoon, oil and gas stocks surging 5.2% to lead gains as all sectors and major bourses traded in positive territory.

European markets are paying close attention to coronavirus developments and the lifting of restrictions in many countries in the region, while keeping an eye on the data. More than 251,000 people around the world have died from Covid-19 and over 3.6 million people have been infected, according to data from Johns Hopkins University.

A top German court on Tuesday determined that the European Central Bank’s government bond purchase program partially violates the law. The quantitative easing program, which ran between 2015 and 2018 and was reinstated late last year, was designed to shore up the euro zone economy by keeping borrowing costs low.

However, the decision will not impact the emergency bond purchase measures deployed by the ECB to mitigate the impact of the coronavirus pandemic.

Stock futures stateside rose in overnight trading as investors remained focused on the reopening of the U.S. economy, with investors weighing fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions.

Meanwhile, stocks in Asia Pacific rose in Tuesday morning trade, with major markets regionally closed for holidays. Hong Kong’s Hang Seng index, which closed more than 4% lower on Monday, rose 0.54% by the afternoon. The city’s government announced on Monday that Hong Kong’s economy contracted 8.9% in the first quarter as compared to a year ago — its largest decline on record since 1974.

In a statement, Hong Kong Financial Secretary Paul Chan said the “external environment is still very challenging” even though the virus situation in the city “seems to be under control.”

Earnings in focus

In terms of corporate earnings, BNP Paribas reported a net income of 1.3 billion euros ($1.42 billion) for the first three months of the year, down 33% from the same period in 2019. The French lender’s stock pared back earlier gains but was still up by 1% in afternoon trading.

Total posted a first-quarter net profit of $1.8 billion, down 35% from a year ago but exceeding analyst expectations and sending the oil major’s shares 6% higher.

At the top of the Stoxx 600, Spanish fossil fuel company Repsol jumped 9% while German meal delivery firm Hellofresh climbed by more than 8%.

At the other end of the European benchmark, Swiss travel retailer Dufry slid by 8%.

Source: CNBC

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