Stocks in the U.S. are trading largely mixwd following a strong showing out of London.
Renewed confidence in Deutsche Bank has motivated European stocks to move higher. Today is the sixth straight day of gains with the Stoxx 600 up almost 1 percent. The U.K.’s FTSE enjoyed its first 7000+ opening in 16 months.
The British market climbed 1.2 percent to 7,068.39, followed by the CAC 40 in Paris, 0.9 percent to 4,491.76, and the DAX in Frankfurt, 0.7 percent to 10,585.12. The FTSE MIB in Milan was up 0.3 percent to 16,324.94.
The euro traded at $1.12, while the pound fetched $1.29, and the Swiss franc equaled $1.03 at 10:30 am CET.
Retail and luxury stocks were also on the upswing, with the morning’s biggest gainers including Zalando, 3.1 percent to 37.85 euros; Britain’s Bonmarche Holdings, 3 percent to 0.94 pounds; SuperGroup, 2 percent to 15.68 pounds; and Safilo Group, 1.6 percent to 8.69 euros.
Among the few stocks that lost ground in mid-morning were French Connection, 1.4 percent to 0.35 pounds; flash sales site MySale Group, 1.5 percent to 0.90 pounds; and Joules Group, 1.2 percent to 2.01 pounds.
Redbook Retail Sales for last week dropped 0.4 percent month over month versus last month’s drop of 0.5 percent. A miniscule amount of improvement. Year-over-year sales grew 1.3 percent versus the previous growth of 0.2 percent. The expectation was for an increase of 0.5 percent, so this is considered a “good print” by Wall Streeters.
The International Council of Shopping Centers released its annual holiday forecast predicting a 3.3 percent year-over-year growth compared to a 2.2 percent increased in 2015.
LVMH Moet Hennessy Louis Vuitton has taken a controlling stake in German luggage brand Rimowa for 640 million euros or roughly $719 million. LVMH is picking up an 80 percent stake from the founders grandson Dieter Morszeck. Alexandre Arnault will become co-chief executive of Rimowa. The stock is rising over 2 percent to 155.80 euros or $174.03 by today’s exchange rates.
Goldman Sachs initiated coverage with a buy rating on Shopify Inc. and gave the company a $53 price target. On Monday, Shopify announced it was acquiring Boltmade Inc. for an undisclosed amount of money.
It’s China’s Golden Week. Macau casino’s are hoping for big tourist spending and U.K. shops are hoping that Chinese tourists head to London following a sharp drop in the value of the currency.