European stocks mint fresh record with bond yields under control

European stocks mint fresh record with bond yields under control

German property companies are up after Berlin’s rent cap was ruled unconstitutional

European stocks edged higher in early action on Thursday, with equities resuming their upward march with bond yields under control.

Up eight of the past 11 days, the Stoxx Europe 600 SXXP, 0.37% rose 0.3% to 437.84. That puts the index on track to finish at a closing record, above the 437.23 reached only last week.

U.S. stock futures ES00, 0.64% also were higher.

In the latest global fund manager survey from Bank of America, investors said a 10-year yield of 2.1% would trigger a 10% reduction in stocks. The yield on the 10-year Treasury BX:TMUBMUSD10Y was 1.62% on Thursday, ahead of the release of U.S. retail sales data that are expected to show a surge after $1,400 stimulus checks were distributed.

Earnings season is under way, and while official results aren’t expected in Europe until next week, some companies are giving preliminary tallies.

ABB ABB, 2.80%, the engineering group, rose 3% after saying it had a better-than-expected first quarter, “especially during the last weeks of March, and relates primarily to the short-cycle business. Quarterly demand is likely to have been supported by customer stock-building activities related to both component availability constraints and rising commodity prices in the industry.”

Publicis Groupe PUB, 3.12% rose 3%, as the advertising conglomerate said its organic revenue rose 2.8% in the first quarter and that it will climb as much as 10% in the second quarter.

Deutsche Wohnen DWNI, 3.26%, a property company, jumped 6% after the German constitutional court ruled Berlin’s rent freeze was unconstitutional. Adler Real Estate ADL, +0.32% and Vonovia VNA, 0.24% each added 2%.

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