- STOXX 600 increases after two weeks of decline
- Zooplus takes off on the sweet offer
- Valneva dives as UK ends COVID-19 deal
September 13 (Reuters) – European stocks finished higher for the first time in five days on Monday, as oil, banks and utilities gained on hopes that a strong eurozone economic recovery would prevail on the risks of a global slowdown.
The pan-European STOXX 600 index (.STOXX) rose 0.3% after hitting a three-week low last week. Asian stocks fell, however, following news of a new regulatory crackdown on Chinese companies.
Global stocks have come under pressure recently after months of gains over concerns over inflation, tighter COVID-19 restrictions in Asian economies, regulatory measures from China and growing views that central banks will begin soon. reduce stimulus measures.
While these concerns remain, European investors have reassured themselves as the European Central Bank last week raised its growth and inflation projections for this year and beyond as the eurozone economy recovers. faster than expected from the pandemic shock.
“While we’re used to seeing US markets leading the way, we feel we might see more catch-up for Europe, as high immunization levels keep deaths relatively stable,” said Joshua Mahony, Senior Market Analyst at IG.
Economically sensitive sectors including banking (.SX7P), oil and gas (.SXEP), and construction and materials (.SXOP), rose 0.9% to 2.8%, while as utilities (.SX6P) grew 1.6%.
All eyes will be on US consumer price data on Tuesday after the surge in producer prices last week raised doubts about the US Federal Reserve’s view that inflation is transient.
“Some central bankers will have you believe that they are happy to hold back the tightening for now, we are seeing very clear signs that this spike in inflation is far from fleeting,” IG’s Mahony said.
Meanwhile, a September market sentiment survey released by Deutsche Bank showed that a stock market correction of 5% to 10% by year-end was the overwhelming consensus. Read more
Among the individual actions, German online pet supplies retailer Zooplus AG (ZO1G.DE) jumped 9.0% after Hellman & Friedman raised its takeover offer to € 3.29 billion ( 3.89 billion euros) against an initial offer of 3 billion euros.
Associated British Foods (ABF.L) fell 2.4% as fourth-quarter sales for its Primark fashion business fell below expectations as the number of buyers was affected by public health measures in its key markets. Read more
Valneva (VLS.PA) plunged 41.6% after the UK government ended a COVID-19 vaccine supply deal with the French company, alleging a breach of obligations that Valneva denies.
Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Edited by Sherry Jacob-Phillips, Uttaresh.V, William Maclean
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