European stocks jump as carmakers, HelloFresh rally

Strong China sales data, hopes of steady economic recovery boost global sentiment

European stocks rose for a third straight session on Tuesday as automakers gained on strong China sales data, with hopes of a steady economic recovery from the coronavirus crisis boosting global sentiment.

The pan-European Stoxx 600 index rose 1.2 per cent by 0716 GMT, led again by a rally in growth-sensitive cyclical sectors like travel and leisure, miners and energy firms .

Automakers rose 2.8 per cent after data showed China’s auto sales in July climbed 16.4 per cent from a year earlier, the fourth consecutive month of gains as the world’s biggest vehicle market comes off lows hit during coronavirus lockdown.

German meal-kit delivery firm HelloFresh, whose shares have more than doubled in value this year, rose 5.6 per cent after it raised its full-year guidance.

Investors globally took heart from signs that another round of U.S.-China sparring appears not to have spilled over into trade, with hopes of additional U.S. fiscal stimulus boosting the sentiment.

UK’s Ftse 100 climbed 1.3 per cent even as data showed the number of people in work in Britain fell by 220,000 in the three months to June, the most since 2009. – Reuters