Oct 13 (Reuters) – European stocks hit their five-week highs on Tuesday after a three-day rally triggered by hopes of further fiscal stimulus in the United States, while Airbus lost positions after JPMorgan downgraded its recommendation for their titles.
The pan-European STOXX 600 index was stable at 0704 GMT, with gains in the energy, real estate and telecommunications sectors, which offset the collapse of the leisure and travel sectors and the automobile.
The benchmark index ended Monday at its highest level in nearly a month, as investors waited for Washington to agree on new federal aid and as data points to a stable recovery in the world’s second-largest economy, China.
New figures released on Tuesday showed that China’s imports in September grew at their fastest pace this year, while exports extended their strong gains.
In corporate news, Airbus SE was down 3.5% after JPMorgan downgraded its shares to “underweight” from “neutral.”
(Information from Sagarika Jaisinghani in Bengaluru; edited by Arun Koyyur, translated by Michael Susin in the Gdansk newsroom)