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European stocks were modestly higher on Tuesday, but set for a seventh straight day of gains. U.S. based investment bank, Jefferies Group, meanwhile, has laid out some fresh stock picks for investors who want to play the region.
Equity analyst Raj Jilka highlighted six new high conviction ideas that have been added to the current batch of names that include miners Glencore
GLEN,
and Anglo American
AAL,
Barclays
BCS,
BARC,
home builder Berkeley Group Holdings
BKG,
and sports betting group Flutter Entertainment
FLTR,
Shares of Flutter climbed 8.5%, as one of the biggest gainers Tuesday after the company reported pretax profit more than tripled in the first half of the year, and that its performance exceeded internal expectations.
As for the new stock picks, Jilka named food delivery group Delivery Hero
DHER,
hearing-aid manufacturer Gn Store Nord
GN,
payments specialist Nexi
NEXI,
drug company Sanofi
SAN,
SNY,
Shell
RDS.A,
RDSB,
and UBS
UBS,
“The current list has an average [market cap] of €48 billion and 40%
upside to JEF price targets. Valuations remain attractive with price/book trading at a 13% premium to the five-year average and a 5% discount to the benchmark on a full-year 2022 price/earnings basis,” said Jilka.
As for the trading day, the Stoxx Europe 600
SXXP,
rose 0.3% to 472.28, marking the seventh consecutive day of gains, but the biggest daily rise in that string was a 0.6% rise last week.
The euro
EURUSD,
meanwhile, slipped after the German August ZEW survey of expectations decreased to 40.4 in August from 63.3 in July. The reading missed economists’ forecast of 57.5 points taken from a survey by The Wall Street Journal.
“Current conditions remain strong but it would appear that concerns around slowing Chinese growth and the anticipated next wave of Covid is responsible for the downbeat expectations, despite high vaccination numbers,” said Craig Erlam, senior market analyst, OANDA Europe, in a note to clients.
Elsewhere, shares of Munich Re
MUV2,
rose 1.6% after the reinsurer reported higher net profit in the second quarter and raised its full-year target for gross premiums. Coronavirus-related losses for the quarter came to EUR241 million, the company said.
Fellow delivery groups HelloFresh
HFG,
and Deliveroo
ROO,
were also big gainers, up around 8% each.
Several banks were losing ground on Tuesday, with heavily weighted HSBC
HSBC,
HSBA,
dropping 1.4%.
