European stocks advanced Tuesday, with gains for financial shares reflecting an improvement for perceived riskier assets such as equities among investors.

The Stoxx Europe 600 index SXXP, +0.48%  picked up 0.5% to 381.34. All sectors rose, led by the financial and basic materials groups. The benchmark on Monday surged 1%, the largest rise in four weeks, as concerns about Hurricane Irma and North Korea’s weapons program receded.

“Market sentiment continues to improve again as the key risk events that drove the safe haven flow at the end of last week continues to unwind, which has helped the dollar and equities higher,” said Richard Perry, market analyst at Hantec Markets.

“With the destruction of Hurricane Irma not as bad as feared and Kim Jong Un opting simply for a [Foundation Day] party that did not go off with a bang, there has been a significant retracement of some of the huge declines on Treasury yields,” said Perry.

Investors worldwide had sought refuge from risks in bonds. But as that is reversing, prices are declining and yields are moving higher, which bodes well for interest-rate sensitive banks. The Stoxx Europe 600 Bank Index FX7, +1.11%  was up 1% on Tuesday. Shares of Deutsche Bank DBK, +2.13%  popped up 1.9%, Commerzbank AG CBK, +2.33%  picked up 2.5% and Banco Santander SA SAN, +0.54%  moved up 0.5%.

As Irma’s wrath wasn’t as destructive as anticipated, the Stoxx Europe 600 Insurance Index SXIP, +0.63%   rose 0.5%. AXA SA CS, +1.01%  was up 0.8% and Swiss Re AG SREN, +0.52%  tacked on 0.5%. But Beazley PLC BEZ, -0.57%  pulled back 0.9%, giving back a portion of Monday’s 4.3% rise.

Stock movers: Ashtead Group PLC AHT, +7.72%  jumped 6.1%, to become the strongest performer on the FTSE 100. The equipment rental company posted a 29% rise in pretax profit and said Hurricanes Harvey and Irma may bolster demand.

Whitbread PLC WTB, -2.65%  fell 2.4

214 0
Comments
Search InvestingPie
Search
Share on Twitter Share on Facebook Share on Google Plus
New comments
Very informative
05-03 04:23 by Liam
The same day Trump spoke with Reynolds
01-29 04:43 by Yavor737347
More from InvestingPie
Advertise with us

Find out our advertising solutions. Our Team will be in touch with you with a program that suits your needs. Please contact us.