European shares tepid at the end of strong quarter

European shares tepid at the end of strong quarter

European shares were largely flat on Tuesday as investors booked some profits following a strong quarterly rebound, while improving China factory data and hopes of more U.S. stimulus buoyed sentiment in Asia.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 23, 2020. REUTERS/Staff

REUTERS: European shares were largely flat on Tuesday as investors booked some profits following a strong quarterly rebound, while improving China factory data and hopes of more U.S. stimulus buoyed sentiment in Asia.

The pan-European STOXX 600 index looked set to post its biggest quarterly gain since March 2015 with a 12.5per cent rise, as unprecedented economic stimulus, hopes of a COVID-19 vaccine and relatively fewer coronavirus cases in Europe powered a rebound from March lows.

Still, the index is down 13.5per cent for the year.

The trade-sensitive German DAX rose 0.2per cent after data showed China's factory activity expanded at a stronger pace in June as the government lifted lockdowns and stepped up investment.

Chipmakers STMicroelectronics , Infineon Technologies , ASM International rose between 1.4per cent and 2.8per cent after an upbeat revenue forecast from U.S. firm Micron Technology .

The broader STOXX 600 index was up 0.1per cent by 0720 GMT, although oil & gas , banking and automakers index were a drag.

Royal Dutch Shell fell 1.0per cent after saying it would write down the value of its assets by up to US$22 billion after lowering its long-term outlook on oil and gas prices.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

Source: Reuters

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