LONDON – European stock markets rose on Monday, with markets following the positive sentiment in Asia and the US
The pan-European Stoxx 600 index was 0.4% higher in the morning trade, with most sectors in positive territory, with the exception of telecommunications, media and food and beverages.
European market sentiment has been supported by positive market action elsewhere, although coronavirus gains and developments remain the focus. News that more contagious variants of British and South African coronavirus continue to spread in the US is expected to shake markets. On Friday, Virginia health officials reported the first case of the strain first identified in South Africa.
On Sunday, South Africa stopped distributing the AstraZeneca vaccine after a new study found that it offered “minimal protection” against mild diseases caused by the variant first discovered there. AstraZeneca shares were flat on Monday.
In the US, hopes of an agreement on a stimulus plan also rose after the Senate and House each adopted a budget resolution on Friday, beginning the reconciliation process that would allow President Joe Biden’s $ 1.9 trillion bailout package dollars to go through the Senate held by the Democrat. with a simple majority.
Major European gains are not down on Monday. In terms of data, the latest figures for German industrial production are expected.
Shares of Dialog Semiconductor rose 17% on Monday, after Renesas Electronics Corp. said it had agreed to buy the Frankfurt-listed chip designer for 4.9 billion euros ($ 5.90 billion) in cash.
Meanwhile, Veolia’s shares of water and waste management fell 1.2% on Monday, after a French court blocked any hostile takeover of its smaller rival Suez, whose shares were 1.45% lower at early trading.
-Cippa Stevens from CNBC contributed to this market report.
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