European Stocks Gain as UniCredit Rally Lifts Banks; WPP Sinks | Stock Market News
European stocks rose for a third day, with banks leading gains on the back of a rally in UniCredit SpA, while advertising group WPP Plc sank 15% after it tempered its revenue outlook.
The Stoxx Europe 600 Index gained 0.8% at 12:28 p.m. in London. UniCredit SpA advanced 3.5% after it doubled its equity stake in German rival Commerzbank AG to about 20%, fueling renewed speculation around potential banking deals in Europe. The Stoxx 600 Banks Index rose 1.8%.
Miners dropped after President Donald Trump indicated the US would implement a higher-than-expected 50% tariff on copper imports. Health care stocks also underperformed as Trump threatened levies of as much as 200%.
WPP shares slumped after the firm lowered its full-year outlook as it struggles with weaker-than-expected client spending and new business. EssilorLuxottica SA rose 5.7% as Bloomberg News reported that Meta Platforms Inc. bought a minority stake in the world’s largest eye-wear maker.
European stocks have meandered this month as lingering trade uncertainty kept a lid on risk demand. The benchmark Stoxx 600 is still about 3% below its March record high, and has trimmed most of this year’s outperformance versus US stocks in local currency terms.
The European Union is reportedly nearing a trade deal with the US, with negotiators focusing on protecting key industries from massive tariffs set to hit the bloc’s exports as soon as Aug. 1. Trump stressed he would not offer additional extensions on country-specific levies.
“Investors are optimistic about a deal in Europe and are front-running it with gains,” said Georges Debbas, head of European equity derivatives strategy at BNP Paribas Markets 360. “On top of that, positioning remains low and European stocks have underperformed the US recently so the market does have the scope to gain further in the short term.”
Focus next week will turn to the second-quarter earnings season as investors look for clues on the impact of higher tariffs.
Goldman Sachs Group Inc. strategists said they remain tactically neutral on equities. The team including Christian Mueller-Glissmann expects to see a worsening growth and inflation mix in the second half of the year, saying that “elevated risk appetite increases risk of disappointments.”
In other movers, Semco Technologies SAS surged 45% in its Paris trading debut on Wednesday.
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With assistance from Paul Jarvis.
This article was generated from an automated news agency feed without modifications to text.
