EURO STOXX50 Rises As Paper Stocks and Autos Drive Market – Outlook Positive
Mar, 06th 10:46
European shares bounced off six-month lows on Tuesday as the focus shifted from politics to deal-making and earnings, with paper and packaging stocks soaring after Smurfit Kappa rejected a bid approach.
Telecom Italia jumped 5 percent after Bloomberg reported that activist investor Elliott Management was building a stake, in a move to challenge the way top shareholder Vivendi is managing the company.
The pan-European STOXX 50 (STOXX) index was up 0.21 percent in early deals, while Italy’s benchmark (FTMIB) recouped all of its losses from the previous session, up 1 percent, as concerns over political uncertainty following an inconclusive election result eased.
European autos were the best-performing sector on the day, up 1.4 percent and putting the industry back into positive territory for the year, along with tech stocks.
On the technical charts, EURO STOXX50 is trading in the positive zone below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 41.84 and the MACD is above the signal line.
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