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Bank stocks recover from Monday's losses
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Germany's ZEW survey due at 0900 GMT
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More US bank earnings due later
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EasyJet up on robust profit outlook
(Updates prices; adds details and comments)
By Shubham Batra
April 18 (Reuters) - European shares rose on Tuesday, as
investors awaited more U.S. bank earnings to gauge the health of
the sector, while China's stronger-than-expected economic
recovery boosted sentiment.
The pan-European STOXX 600 index edged 0.2% higher,
after the week started with a pullback from one-year highs,
ending a five-day winning run.
Bank stocks , which were hammered on Monday, rose
0.9%, while utilities slid 0.5%.
Travel shares were among the top gainers, led by
EasyJet Plc , which jumped 3.1% as the airline said it
expects full-year profit to beat market forecasts.
China's economy grew 4.5% year-on-year in the first quarter,
eclipsing expectations as policymakers moved to bolster growth
following the end of strict COVID-19 curbs in December.
However, easing inflation and surging bank savings are
raising questions over the strength of domestic demand.
"The question for markets is what comes next, and how will
rising global headwinds impact the recovery?," UBS analysts said
in a note.
"With policymakers pledging a pro-growth stance, and signs a
significant recovery in consumption on pent-up demand and
supportive base effects, we think China will surpass its
relatively modest 5% growth target this year."
The increase in China's consumer spending also pushed luxury
shares in Europe higher by 0.4%.
Markets will now watch out for reports from Goldman Sachs
Group Inc and Bank of America Corp later in the
day, while Morgan Stanley is due on Wednesday, after
stellar results from the other big U.S. banks last week.
After a strong start to the year, European equities took a
hit last month following the forced rescue of Credit Suisse and
uncertainty over interest rate outlook. Still, the STOXX 600 has
managed to gain 10% this year, compared to the S&P 500 index's 7.5% gain.
Shares of Demant were up 6.6% and were the top
gainer on the broader index, after the Danish hearing aid maker
raised its financial guidance for 2023 on Monday.
UBS Group AG added 1.2% as the Swiss bank was
making changes to its $6 billion share buyback programme
following its takeover of Credit Suisse Group AG .
Investors will also monitor Germany's ZEW survey, due at
0900 GMT, expected to show that economic conditions in region's
largest economy improved in April from the previous month.
(Reporting by Shubham Batra in Bengaluru; Editing by Varun H
K)
