European Stocks Close Higher

European stocks closed higher on Monday as continued optimism about global economic recovery and the momentum in vaccination drive outweighing concerns over inflation and fears about any monetary tightening by central banks.

Worries about coronavirus cases in Europe are subsiding with several countries in the region reporting a drop new cases and set to ease all or most of the restrictions by the end of next month. France reported its lowest daily death toll in several months, and new cases were down to lowest levels in about five months.

Investors were also closely following cryptocurrencies movements, geopolitical issues, and the forced landing of a Ryanair flight in Belarus.

Stocks pared early gains and briefly fell into the red midway through the session, but rebounded and closed higher, taking cues from Wall Street where the mood was fairly bullish.

The pan European Stoxx 600 advanced 0.14%. The U.K.’s FTSE 100 climbed 0.48% and France’s CAC 40 gained 0.35%.

Several markets in Europe, including Germany, Switzerland, Denmark and Austria, were closed for Whit Monday holiday.

Belgium, Greece, Ireland, Netherlands and Sweden closed higher. Finland, Poland and Portugal drifted lower, while Czech Republic, Russia, Spain and Turkey ended flat.

In the French market, Unibail Rodamco gained nearly 3%. Capgemini, Safran, Renault, Hermes International, Accor, Valeo and LOreal posted strong gains.

Engie ended nearly 4% down. BNP Paribas, Technip and Credit Agricole also closed weak.

In the UK market, Compass Group, Pershing Square Holdings, Entain, Flutter Entertainment, IHG, ICP, Whitbread, Vodafone Group, British Land Company, Spirax-Sacro Engineering, WPP, BP, Hikma Pharmaceuticals and BT Group gained 1 to 3%.

Cineworld shares rallied sharply after the company said its U.K. cinemas attracted more people than expected in its first weekend of reopening, following a months-long lockdown.

Fresnillo, Admiral Group, Antofagasta and BHP Group ended notably lower.

In the Swedish market, shares of Swedish telecom equipment maker Ericsson fell 1.6 percent. The company said that there is a risk that the decision by the Post and Telecommunication Authority to exclude Chinese vendors’ products from the 5G auction in Sweden may adversely impact its economic interests.

Shares of Irish low-cost airliner Ryanair gained about 0.5%. Belarusian opposition activist Roman Protasevich was arrested after a Ryanair flight from Greece to Lithuania was forced to land in Belarus over an alleged bomb scare.