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European Shares Close Largely Higher As Eurozone's Q1 GDP Shrinks Less Than Estimated

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Last updated: 06/08/2021 12:14:34

12:14 PM EDT, 06/08/2021 (MT Newswires) -- European stocks on Tuesday closed largely higher, with investors very much focusing on the US inflation data scheduled for Thursday, as the eurozone's GDP contracted less than expected in the first quarter.

The French CAC ended up 0.1%, the European STOXX 600 closed up 0.2%, and the Swiss Market Index finished up 0.2%. Meanwhile, the German DAX 30 ended down 0.2%, and the FTSE 100 closed up 0.3%.

The euro area's gross domestic product contracted by 0.3% in the first quarter of 2021, following a 0.6% drop in the fourth quarter of 2020 and beating the initially estimated decline of 0.6%, Eurostat said. On a yearly basis, the euro area's seasonally adjusted GDP fell 1.3% in the first quarter, also surpassing the expected drop of 1.8%. The European Union's quarterly GDP declined 0.1% in the first quarter and was 1.2% lower than a year before.

Meanwhile, sentiment regarding the economic development of the eurozone declined 2.7 points month over month to 81.3 in June, according to ZEW data. The current economic situation index in the eurozone improved 27 points to -24.4 in June.

On the corporate front, Stellantis-controlled (STLA.PA, STLA.MI) Aramis launched an initial public offering on Euronext Paris to raise as much as 481 million euros ($585.4 million), aiming to boost growth and become Europe's leading online used car retailer.

The French company will initially issue new shares to raise about 250 million euros and sell 6 million existing shares for at least 138 million euros, followed by an overallotment option that could take the total to between 446 million euros and 481 million euros. The shares will be sold at between 23 euros and 28 euros each.

British American Tobacco (BATS.L) bumped up its revenue growth guidance for 2021 as it expects non-combustible products growth, as well as continued value and volume share gains in cigarettes. The tobacco giant expects year-over-year revenue growth of more than 5%, compared with the previous estimate of between 3% and 5%, driven by its "strong business performance."

Intermediate Capital (ICP.L) raised a total of $10.6 billion in funds for the year ended March 31, marking its third-highest year on record amid unprecedented economic uncertainties due to the pandemic. The fundraising boost was reflected in the private-equity firm's third-party assets under management, climbing to $56.2 billion from $47.2 billion in the prior year, mainly driven by a higher proportion of equity-type investments. Intermediate Capital said Tuesday that $13.3 billion of the total amount is ready for deployment into new investments.

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