Volkswacht Bodensee - Shares in Tesla and airlines take off

Tesla shares climbed over six percent after the company reported a new record in quarterly profits of $3.3 billion on Wednesday.

Moreover, Elon Musk's high-flying firm said its 2022 output plan was on track despite ongoing supply chain problems and a hit from recent Covid-19 lockdown measures in China.

While many carmakers have been hobbled by a lack of semiconductors, Musk said it "seems likely" the company will produce more than 1.5 million vehicles in 2022, which would be above the company's long-term target of at least 50 percent output growth.

"If consumer spending is holding up well enough for Tesla to keep reporting decent numbers, then the market appears to be more confident that the US economy, and others too, can withstand the current expectations around inflation and interest rates," said Chris Beauchamp, chief market analyst at online trading platform IG.

There had been volatility in the markets this week over higher interest rates, surging inflation and lower global growth forecasts in 2022.

Meanwhile, Musk has lined up $46.5 billion in financing for a possible hostile takeover of Twitter, according to a securities filing released on Thursday. Twitter shares fell 0.3 percent in late morning trading.

- Airlines soar -

A forecast by United Airlines for surging travel demand as the pandemic impact fades helped boost airline shares in Europe and the United States.

Shares in European airlines were flying high. British Airways parent IAG soared 6.3 percent and shares in low-cost rival EasyJet jumped 4.9 percent in afternoon trading in London.

"The aviation sector is flying higher on expectations of a bumper quarter, after United Airlines posted record guidance for the second quarter," City Index senior markets analyst Fiona Cincotta told AFP.

The aviation sector was ravaged by the pandemic that erupted in early 2020. Surging oil prices amid the fallout from the Russian war have also acted as a headwind.

United Airlines shares jumped 12.2 percent in late morning trading.

The carrier forecast "the strongest second-quarter revenue guidance in company history" despite logging another Covid-induced loss for the first quarter.

American Airlines, meanwhile, reported another quarterly loss on Thursday, but said a recent sharp improvement in bookings should enable it to achieve profitability in the second quarter.

Shares in American Airlines climbed 6.4 percent and those in Delta gained over six percent.

Europe's main indices were mainly up at the close of trading, although the FTSE 100 was flat.

Stock markets in Hong Kong and Shanghai fell sharply on heightened anxiety over China's renewed Covid lockdowns and curbs on tech companies.

Tokyo, however, rallied on optimism over a falling yen, which boosts exporters.

Meanwhile, world oil prices rebounded after diving the previous session on weaker demand concerns.

- Key figures around 1530 GMT -

New York - Dow: UP 0.5 percent at 35,329.62 points

EURO STOXX 50: UP 0.3 percent at 3,781.13

Frankfurt - DAX: UP 1.0 percent at 14,502.41 (close)

Paris - CAC 40: UP 1.4 percent at 6,715.10 (close)

London - FTSE 100: FLAT at 7,627.95 (close)

Tokyo - Nikkei 225: UP 1.2 percent at 27,553.06 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 20,682.22 (close)

Shanghai - Composite: DOWN 2.3 percent at 3,079.81 (close)

Euro/dollar: UNCHANGED from $1.0853 late on Wednesday

Dollar/yen: UP at 128.47 yen from 127.86 yen

Pound/dollar: DOWN at $1.3051 from $1.3068

Euro/pound: UP at 83.17 pence from 83.05 pence

Brent North Sea crude: UP 0.9 percent at $107.80 per barrel

West Texas Intermediate: UP 1.2 percent at $103.46 per barrel

burs-raz/RL

J.Bergmann--BTB