European stocks were broadly higher on Monday amid expectations that positive economic data from the United States and China coupled with the U.S. Senate’s passage of a $1.9 trillion stimulus bill may bode well for a stronger economic recovery.
The pan European Stoxx 600 rose half a percent to 410.55 after declining 0.8 percent on Friday.
The German DAX gained 0.7 percent and France’s CAC 40 index added 0.4 percent while the U.K.’s FTSE 100 was little changed on pound strength.
The British pound ticked higher against a range of other currencies on optimism over the U.K.’s vaccine rollout and the easing of a stringent lockdown, with children returning to school in England for the first time since January.
A measure of U.K. business confidence hit a 12-month high, adding to optimism over economic recovery.
Elsewhere, Sentix’s index for the euro zone rose to 5.0 from -0.2 in February, the highest since February 2020 driven by an improved view of the current situation.
Investors shrugged off data from Destatis showing that German industrial production decreased unexpectedly in January.
Industrial production fell 2.5 percent month-on-month in January, confounding expectations for an increase of 0.2 percent. Production had advanced 1.9 percent in December.
BP Plc fell 0.8 percent and Royal Dutch Shell traded flat despite oil prices hitting new records boosted by reports of attacks on Saudi Arabian facilities.
Travel-related stocks were gaining ground, with tour operator company Cruise operator Carnival climbing 3.6 percent and airline Lufthansa adding 3.2 percent.
Education group Pearson rallied 3 percent. The company said it expects revenue growth in 2021, with adjusted operating profit expected to be in line with current market forecasts.
Aircraft parts supplier Senior Plc advanced 3.4 percent despite warning that this year would be as challenging as 2020.
Domino’s Pizza Group rose over 1 percent after it agreed to sell its entire shareholding in PPS Foods AB (Domino’s Sweden) to Eyja fjárfestingafélag III EHF.
Valneva SE shares rallied 2.2 percent. The specialty vaccine company and Pfizer Inc. have initiated Phase 2 VLA15-221 study for Lyme disease vaccine candidate.
Market Analysis
European Shares Broadly Higher In Cautious Trade
2021-03-08 10:02:26
