Markets recover with Burberry taking lead

Tuesday, 30 August 2011
European stocks traded mixed Tuesday with weak confidence data hurting sentiment in the euro zone but supported by strong gains in the U.K., as London played catch up after Monday's public holiday. Puma AG defied falling Dax with a gain of 10.43%. In the meantime, the FashionUnited Top 100 Index closed in green after gloom sessions, gaining by 25.51. The international fashion benchmark index hiked to 1252.71, rapidly recovered from past week’s rollcoaster.

Many European markets reversed early gains to trade in negative territory on Tuesday afternoon, after a report showed that Eurozone economic confidence declined sharply in August. Firm cues from Asia failed to sustain sentiment, while U.S. index futures are lower. The German DAX closed at down, as well as its French homologue CAC 40. In contrast, the UK's FTSE 100 was rallying 2.37 percent.

However, the UK market, which reopened after Monday's public holiday, rehearsed stronger than past sessions, as investors were digesting Federal Reserve chief Bernanke's remarks made on Friday. The Euro Stoxx 50 index of eurozone bluechip lost around 0.13 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added over 1.03 percent.

Burberry was in demand on a highly volatile day in the London market, with the fashion’s shares climbing after an upgrade to “overweight” from Barclays Capital. Julian Easthope, an analyst at Barclays Capital, said he believed Burberry will achieve strong sales growth “even in a more muted developed world economic environment”. He added: “We see this growth coming from a number of areas including increased geographical penetration, own retail (Burberry-owned stores) as well as opportunities across the broad product range (such as accessories)”. Burberry shares gained 39p to £12.57.

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