European shares record the best session in 11 weeks, supported by strong gains for banks

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A 3.5 percent jump in European bank shares and gains in technology companies pushed the benchmark European stock index up more than 1 percent on Tuesday, also supported by positive US data that gave a boost to Wall Street.

The European technology sector index rose 2.2 percent, reversing from seven consecutive sessions of losses, in which it fell 11.7 percent. US technology stocks also rose as investors bought after a sharp fall in the previous session.

Chip maker Infineon jumped 4.8 percent, leading the sector’s gains, after it confirmed its revenue forecast for 2021 and said it expects to continue rising next year.

The pan-European Stoxx 600 index ended the trading session up 1.2 percent, with all major sector indices recording gains, which helped the benchmark index record its best session since July 21.

 

European bank shares jumped to their highest level in more than a year and a half. JPMorgan said it still recommended buying bank shares.

Investors are now awaiting Friday’s US jobs data for signs of the time frame for tapering the Federal Reserve’s program of asset purchases. Data on Tuesday showed that US service sector activity rose in September.

Source: Reuters

The article European stocks recorded the best session in 11 weeks, supported by strong gains for banks, was written in Al Borsa newspaper.