On Tuesday, European stocks bounced back to a record high in a broad-based advance, with travel industry rallying as tour operator Tui illustrated the way it has gained an advantage from the fall down of a rival.
The Stoxx Europe 600 SXXP, +0.37% raised 0.9% to 428.47. The previous record closing high was set on Feb. 6 at 425.49.
Also, the German DAX DAX, +0.64%, which gained 1% to 13627.84, reached a new record.
On Tuesday, the U.S. stocks increased as Fed Chairman Jerome Powell struck what analysts explained was a careful tone in Congress testimony. “The remarks support the belief that the virus developments reinforce low-for-longer on rates with some increased possibility of further rate cuts – a belief that has helped support risky assets through the virus shock to date,” said Krishna Guha of Evercore ISI.
Tui shares TUI, -0.14% increased 13.1% after the Anglo-German tour operator modestly narrowed its fiscal first-quarter loss, mentioning that it witnessed booking trends and lifting its revenue outlook. Now, the travel and tourism company explained that it expects high single-digit revenue growth for the year in its markets and airlines business against previous guidance of mid-to-high single-digit revenue growth. Without mentioning Thomas Cook by name, Tui said it benefited from “the insolvency of a key competitor.”
Other travel companies rose as well. Air France-KLM AF, +2.51% rose 4.7% and International Consolidated Airlines Group IAG, +1.37% rose 3.8%.
Deutsche Telekom DTE, +0.45% shares increased 3.6% as a judge approved the union of T-Mobile US TMUS, +11.78% and Sprint S, +77.50% on Tuesday. Deutsche Telekom holds 63% of T-Mobile US.
Tags: European stocks
