(Reuters) - A jump in oil and tobacco shares helped European stocks close higher on Tuesday, with the main indexes partially recovering from a selloff triggered by fears of new lockdowns as COVID-19 cases spike across the continent.
Britain's exporter-heavy FTSE 100 .FTSE added 0.4%, benefiting from a weaker pound after Prime Minister Boris Johnson told people to work from home where possible and ordered bars and restaurants to close early to tackle a fast-spreading second wave of infections. [.L]
Britain's midcap index .FTMC, made up of more domestically focussed companies, slipped 0.3%.
“Many such measures will hit parts of consumer spending (mostly services such as leisure, entertainment, tourism) disproportionately,” Berenberg economist Holger Schmieding said in a note. “We expect these measures to temporarily dampen but not derail the overall economic rebound.”
Data showed euro zone consumer confidence rose to -13.9 in September from -14.7 in August, the European Commission said, while the Ifo Institute upgraded its forecast for Germany, expecting GDP to shrink 5.2% this year, an improvement on its last projection of a 6.7% drop.
Danish shipping firm AP Moeller Maersk MAERSKb.CO jumped 5.2% after JPMorgan upgraded the company to "overweight".
Travel & leisure stocks .SXTP fell 1.1%, adding to a 5.2% drop in the previous session, with surging COVID-19 cases across Europe threatening to hamper travel demand again.
Premier Inn-owner Whitbread WTB.L slipped 2.8% after saying it plans to cut 6,000 jobs in its hotel and restaurant units due to the pandemic's impact on the industry.
Airbus SE AIR.PA fell 2.7% after CEO Guillaume Faury told a French radio station that the situation with airlines was worse than expected.
Deutsche Bank DBKGn.DE slipped 1% after an executive told Reuters it plans to shutter one in five branches in Germany.
Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Pravin Char
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