Via Reuters

By Amal S and Sruthi Shankar

(Reuters) – European stocks inched higher on Tuesday, as possible extension of German lockdowns drew investors into defensive sectors such as healthcare and telecoms.

After gaining almost half a percent at the open, the pan-European STOXX 600 index rose just 0.1% by 0938 GMT, while Germany’s DAX and London’s blue-chip index rose 0.2% each.

Gains at the open were fuelled by Asian stocks closing in on all-time highs as investors wagered China’s economic strength would help underpin growth in the region after data confirmed the world’s second-largest economy was one of the few to grow over 2020. [MKTS/GLOB]

However, the prospect of longer lockdowns in Europe kept investors on edge, with German Chancellor Angela Merkel set to agree with regional leaders to extend a lockdown for most shops and schools until mid-February, sources told Reuters.

Defensive sectors that tend to remain immune to economic cycles such as healthcare, telecom and utilities gained the most, while retail stocks took the biggest hit.

“With the extension of lockdowns, Q1 GDP growth will be negative, in Germany and euro area as well,” said Matthias Bausch, senior cross asset strategist at Commerzbank.

“However, the current situation is not the important driver for equity markets. If investors realise that lockdowns might be extended into Q2 or Q3, there is a much bigger risk.”

Tech stocks gained 0.4%, led by Logitech, which jumped 2.5% as it raised its 2021 sales growth and profit outlook for the third time, benefiting from a pandemic-driven boost in demand for work-from-home products and gaming accessories.

UK-listed shares of Rio Tinto was flat despite reporting a 2.4% rise in fourth-quarter iron ore shipments, helped by industrial activity in top consumer China.

Swiss chocolate maker Lindt & Spruengli fell 2.2% after it said organic sales fell 6.1% in 2020, with only a lukewarm improvement in the second half as COVID-19 restrictions and the absence of travel weighed.

Analysts are forecasting a 26.3% decline in fourth-quarter profit for companies listed on the STOXX 600, as per Refinitiv IBES.

Investors were also monitoring the political situation in Italy ahead of a confidence vote in the upper house Senate that could force prime minister Giuseppe Conte to resign.

(Reporting by Amal S and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)

Via Reuters

By Shivani Kumaresan

(Reuters) – British shares inched higher on Tuesday, supported by gains in HSBC and drugmakers, at a time when tighter coronavirus restrictions have raised concerns about the pace of an economic recovery.

The FTSE 100 index was up 0.3% after two consecutive sessions of declines, with HSBC Holdings, up 2.5%, giving the biggest boost to the blue-chip index.

“HSBC is up on Asian growth. UK investors could play on the what the growth is like in China,” said Neil Wilson, chief market analyst at Markets.com.

“We are dealing with a market that is shuffling the cards at the moment in a sense that they had a big run over the last three months and is looking for direction.”

The FTSE 100 tumbled 14.3% in 2020, its worst performance since the 2008 financial crisis and underperforming its European peers by a wide margin, as pandemic-driven lockdowns battered the economy and led to mass layoffs.

British firms called for another 7.6 billion pounds ($10.3 billion) of emergency government help, saying they cannot wait until finance minister Rishi Sunak’s March budget to learn if they will get more pandemic support.

The mid-cap index gained 0.2%, with travel stocks easyJet and Wizz Air Holdings being the top boosts.

Shares of Experian Plc, the world’s largest credit data firm, gained 1.2% after its third-quarter revenue growth exceeded targets, helped by strong U.S. mortgage volumes.

OXO cube maker Premier Foods fell 4.6% despite a 90% jump in the third-quarter online sales, while British fashion group Superdry lost 12.9% after reporting a big drop in sales in the Christmas quarter.

(Reporting by Shivani Kumaresan in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)

Via Reuters

BENGALURU (Reuters) – Indian hyperlocal courier startup Dunzo has raised $40 million from existing investor Google and others, it said on Tuesday, after seeing a surge in usage during the COVID-19 pandemic.

As many Indians stayed indoors for much of 2020 because of the health crisis, Dunzo and food-delivery apps Zomato and Swiggy recorded a fresh surge in popularity. Naspers-backed Swiggy also runs a hyperlocal courier service.

“This capital stems from a year of robust growth amidst the pandemic,” Dunzo said in a statement. “As cities reopen, (Dunzo) continues to see strong growth across user segments.”

Besides Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada and Alteria also participated in the fundraising round, the Bengaluru-based company added.

Dunzo allows users to order groceries and other essential items from nearby stores as well as run pick-up and drop errands within the eight cities it operates in.

“As merchants go digital, Dunzo is helping small businesses in their digital transformation journey,” said Caesar Sengupta, vice president at Google, which has set aside $10 billion for digital investments in India over five to seven years.

(Reporting by Sachin Ravikumar in Bengaluru; Editing by Shinjini Ganguli)