Source: Sharecast
The pan-regional Stoxx 600 index was up 0.17% at 542 points with Britain’s FTSE 100 up 0.35%.
‘’There’s been a recovery in sentiment for the pound, stocks and UK government debt after scenes in Parliament roiled markets,” said Hargreaves Lansdown analyst Susannah Streeter.
Bond markets were shaken when the UK government caved in to a rebel backbench MPs who opposed a Bill that would cut welfare payments, effectively axing any fiscal spending headroom available to embattled Finance Minister Rachel Reeves.
The yield on the UK’s benchmark 10-year government bond fell slightly after spiking on Wednesday.
“The government is in repair mode, with (Prime Minister) Keir Starmer backing Rachel Reeves to remain Chancellor (finance minister) into the next election and beyond. This is helping restore some calm on bond and currency markets, given that investors need stability and certainty to have the confidence to invest in UK assets,” Streeter added.
On the economics front, private sector activity growth across the eurozone in June was revised higher on Thursday, according to S&P Global and Hamburg Commercial Bank (HCOB), reaching its highest in three months.
The HCOB eurozone composite purchasing managers' index (PMI), which tracks activity across the services and manufacturing sectors, rose to 50.6 in June from 50.2 in May.
This was above the preliminary estimate of 50.2 released last week and the highest reading since March. It was also the sixth straight month above the 50-point mark which separates growth from contraction.
Meanwhile, US President Donald Trump claimed he had secured a trade deal with Vietnam that would see a lower-than-threatened 20% tariff on the Asian nation’s exports.
Sentiment was also boosted as the US lifted restrictions on exports to China for chip design software developers and ethane producers.
In equity news Watches of Switzerland dived as the luxury brands seller reported a fall in annual profits and posted record revenue but warned US products would be hit by tariff increases.
Reporting by Frank Prenesti for Sharecast.com