European Stocks Close Notably Higher On Bargain Hunting

European stocks closed notably higher on Monday, reacting to new British finance minister Jereme Hunt’s decision to scrap most of the policies announced in Prime Minister Liz Truss’s budget on September 23.

UK finance minister Jeremy Hunt said income tax cuts the government had planned would be shelved indefinitely, and he reversed plans to slash dividend tax rates and scrap alcohol duties.

The measures announced by Hunt reverse more of Prime Minister Liz Truss’s growth program, which prompted a selloff in UK assets after it was unveiled by her then-chancellor Kwasi Kwarteng. Hunt took over as finance minister after Truss fired Kwarteng on Friday.

Hectic bargain hunting at several counters following recent sharp losses contributed as well to the jump in stock prices.

Worries about rising interest rates, slowing growth and geopolitical tensions continued to linger, but that did not deter investors from picking up stocks.

The pan European Stoxx 600 climbed 1.83%. The U.K.’s FTSE 100 gained 0.9%, Germany’s DAX moved up 1.7% and France’s CAC 40 surged 1.83%. Switzerland’s SMI gained 1.64%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkiye closed sharply higher.

Denmark and Iceland posted modest gains, while Czech Republic ended weak.

In the UK market, British Land Co., Persimmon, Land Securities, IAG, United Utilities, ICP, Severn Trent and National Grid gained 4 to 5.2%.

Taylor Wimpey, Barratt Developments, Ocado Group, Segro, Smurfit Kappa Group, Legal & General, Schroders, Melrose Industries, JD Sports Fashion, Smith (DS), Whitbread and Unite Group were among the other major gainers.

Hargreaves Lansdown shed nearly 2%. The company is facing a £100 million ($113 million) lawsuit from thousands of investors. Haleon, BP and Pearson lost 1 to 2%.

ASOS plummeted 8%. The online fashion retailer confirmed reports suggesting that it is in negotiations with its lenders over changing the terms of its 350 million pound ($394 million) borrowing facility.

In Paris, Atos and Faurecia rallied 5.7% and 5.2%, respectively. Renault, Publicis Groupe, Kering, Safran, Dassault Systemes, Air France-KLM, BNP Paribas, Michelin, Thales, WorldLine, Capgemini, Airbus Group, Hermes International and Teleperformance gained 2.5 to 4%.

In the German market, HelloFresh, Vonovia, Deutsche Wohnen, Zalando, Adidas, Continental, MTU Aero Engines, Volkswagen, Siemens, Porsche Automobil, Puma and Infineon Technologies moved up 2.5 to 5.5%.