FTSE up 1.75%; DAX up 1.65%; CAC 40 up 1.91% (Il Sole 24 Ore Radiocor) - London, 07 Aug - European shares closed broadly higher rebounding from Monday's selloff as investors looked past a three-day rout which wiped out most of 2024's market gains.

Volatility eased in global markets as markets dismissed the possibility of an emergency rate hike by the Federal Reserve and after Bank of Japan vice governor Uchida Shinichi said the BoJ will not raise rates if the markets don't stabilise.

This come after the BoJ's hawkish pivot caused a major unwind of the yen carry trade that had been used to finance the acquisition of stocks for years.

In 'carry trades', investors borrow money from economies with low interest rates such as Japan or Switzerland, to fund investments in higher-yielding assets, such as stocks, elsewhere.

Investors also monitored a fresh string of earnings reports from European companies including Novo Nordisk, Maersk, Commerzbank, Siemens Energy, Continental, Puma, Glencore, WPP, ABN AMRO, Ahold Delhaize and Illimity.

On the data front, German manufacturing production rose in June a seasonally and calendar-adjusted 1.4% month on month and fell a calendar-adjusted 4.1% year on year, according to the statistics office Destatis. In May, production fell 3.1% month on month and 7.2% year on year. The monthly reading was revised down from negative 2.5%.

In June, Germany posted a seasonally adjusted foreign surplus of 20.4 billion euros compared with a 25.3 billion euro surplus in May and a 19.0 billion euro surplus in June 2023.

Calendar and seasonally adjusted exports of goods totalled 127.7 billion euros, down 3.4% on the previous month and 4.4% year on year, while calendar and seasonally adjusted imports stood at 107.3 billion euros, up 0.3% on the previous month and down 6.4% year on year.

The London FTSE 100 closed up 1.75% at 8,166.88 points, the Frankfurt DAX added 1.65% at 17,607.73 points, the Paris CAC 40 rose 1.91% at 7,266.01 points, while in Milan the FTSE MIB gained 2.33% at 31,831.64 points, and in Madrid the IBEX 35 closed 2.09% higher at 10,607.29 points.

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(RADIOCOR) 07-08-24 18:01:43 (0585) 5 NNNN