European stocks rose at the start of the week on Monday, with investors inspired by countries reopened after a pandemic and a positive survey of business sentiment in Germany.
However, trading was slimmer given the UK and US holidays.
The Stoxx Europe 600 index
rose 0.8% to 342.87 after rising 3.6% last week. This was the best weekly return since the week of April 9th. The French CAC 40 index
won 1.1% and the FTSE MIB Italy
gained 0.8%. The British markets are closed on Mondays due to a spring holiday.
The German DAX
rose by 1.6% after German business sentiment developed stronger than expected in May after “catastrophic months”, the Ifo Institute said. The gradual easing of the blockage “offers a glimmer of hope” for the business, said Clemens Fuest, Ifo President.
Before this data, a 2.2% slowdown in German growth was confirmed in the first quarter, the largest decline since the financial crisis and driving the economy into recession. German business sentiment rose later in the morning in May and exceeded forecasts as business expectations improved significantly, the Ifo Institute announced on Monday.
Investors are watching the increasing tensions between the US and China and the growing unrest in Hong Kong, but remain “somewhat optimistic about the reopening of companies around the world and hope for further monetary and fiscal incentives,” said Ipek Ozkardeskaya, senior Analyst at Swissquote Bank, in a note to customers.
Hong Kong police fired water cannons and tear gas at protesters in a popular shopping area on Sunday as thousands protested on the street against China’s plan to push ahead with the city’s national security legislation. Signs of new tensions in the region add to the tensions that have arisen between the United States and China due to the coronavirus pandemic.
House National Security Advisor Robert O’Brien said on Sunday that the US will likely sanction China if this legislation goes through. China, for its part, warned of tense relations between the two countries.
“We need to be vigilant about the efforts of some American political forces to kidnap China-US relations, which are trying to push the two countries into a so-called” new Cold War, “” said Foreign Minister Wang Yi of China on Sunday in comments According to reports in the South China Morning Post and elsewhere.
In Europe, investors were pleased to hear that the major European countries are slowly opening up again after standstills. The churches in France were reopened for Sunday mass for the first time in two months, while Spain said they would reopen to international tourists in July, and Germany and Italy were also slowly reopening their economies.
Prime Minister Boris Johnson has come under fire in the UK for assisting chief assistant Dominic Cummings, who drove 250 miles from London to Durham to his parents’ home while he was infected with coronavirus.
The drug stocks were on the move on Monday, with shares of heavyweight Bayer AG
After Bloomberg reported that it had signed contracts for 50,000 to 85,000 US cancer lawsuits related to its weed killer summary, it grew 4.5%. These quoted sources said that none of the contracts had yet been signed.
Novo Nordisk AS shares
were down 1.6% during the automaker BMW AG
fell by almost 2%.
was an increase of 1.6% among the heavyweight winners.
US stock futures
traded higher, although Wall Street remains closed on Monday due to Memorial Day holidays.