LONDON – European stocks rose on Monday, with markets following positive sentiment in Asia and the US
The Pan-European Stoxx 600 index was 0.4% higher in morning trade, with most sectors in positive territory, except telecommunications, media and food and beverages.
European market sentiment was driven by positive market actions elsewhere, although coronavirus profits and developments remain in focus. News that the most contagious British and South African variants of the coronavirus continue to spread across the United States is expected to shake markets. On Friday, Virginia health officials reported the first case of the strain’s state first identified in South Africa.
On Sunday, South Africa suspended the distribution of the AstraZeneca vaccine after a new study found that it offers “minimal protection” against mild illnesses caused by the variant discovered there for the first time. AstraZeneca’s shares were flat on Monday.
In the United States, hopes for a stimulus plan deal also rose after the Senate and House passed a budget resolution on Friday, initiating the reconciliation process that would allow the $ 1.9 trillion bailout package from President Joe Biden will pass the Democratic-controlled Senate with a simple majority.
No major European gains are due on Monday. As for the data, the latest data on German industrial production is due.
Dialog Semiconductor’s shares rose 17% on Monday after Renesas Electronics Corp said it agreed to buy the Frankfurt-listed chip designer for 4.9 billion euros ($ 5.90 billion) in cash.
Meanwhile, the shares of water and waste management company Veolia fell 1.2% on Monday after a French court blocked any hostile takeover of rival Suez, whose shares were 1.45% lower at the start of the year. trading floor.
Pippa Stevens of -CNBC contributed to this market report.
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