Europe Markets: European stocks advance as travel sector booms
European stocks rebounded on Tuesday in a broad-based advance, with the travel sector rallying as tour operator Tui demonstrated how it has benefited from the collapse of a rival.
The Stoxx Europe 600
climbed 0.69% to 427.51. The record closing high was set on Feb. 6 at 425.49.
U.S. stock futures
were stronger as well. Jerome Powell, chair of the Federal Reserve, is due to testify to Congress on the economic outlook. Markets will also be considering U.S. politics as the New Hampshire primary results are expected to come on Tuesday night.
jumped 11% after the Anglo-German tour operator modestly narrowed its fiscal first-quarter loss, stating that it recorded improved booking trends and lifting its revenue outlook. The travel and tourism company said it now expects high single-digit revenue growth for the year in its markets and airlines business versus previous guidance of mid-to-high single-digit revenue growth. Without mentioning Thomas Cook by name, Tui said it benefited from “the insolvency of a key competitor.”
Other travel companies rose as well. EasyJet
shares rose 2.1% and Air France-KLM
shares climbed 3.5% as the company said Judge Victor Marrero has informed it he will decide on the merger of T-Mobile US
on Tuesday. Deutsche Telekom holds 63% of T-Mobile US.
shares slumped 16% as Kohlberg Kravis Roberts said it’s not made a proposal to buy the Middle Eastern hospital operator and that it doesn’t intend to make one. GK Investment Holding Group earlier on Tuesday had stated it’s in the preliminary stages of considering a bid. NMC, a target of short-seller Muddy Waters, on Monday had said KKR and GK Investment had made “highly preliminary approaches.”