Monday, September 27, 2021

Oil on recovery stakes, banks lift European stocks

European stocks rose on Monday, with gains in oil, banks and utility stocks as investors expected a stronger euro zone economic recovery to outweigh the risks of a global recession.

The pan-European STOXX 600 index was up 0.4 percent last week after hitting a three-week low. However, Asian stocks declined after reports of fresh regulatory action on Chinese companies.

Global stocks have come under pressure recently after months of gains about inflation, tighter COVID-19 restrictions in Asian economies, regulatory moves by China and rising thoughts that the central bank will soon start easing stimulus.

While those concerns remain, European investors took rest as the European Central Bank last week raised its growth and inflation projections for this year and beyond, as the euro area economy recovers faster than expected from the pandemic shock. She goes.

Sensitive sectors of the economy, including banks, oil and gas, and construction and materials, rose 1 percent to 1.3 percent, while utilities rose 1.2 percent.

“Regionally, we maintain our preference for non-US markets, where there is room for catch-up,” Daniel Grosvenor, director of equity strategy at Oxford Economics, said in a note.

“European markets and Japan in particular appear well-established as their valuations remain relatively depressed and their EPS momentum continues to improve at a time when the US looks to be peaking.”

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All eyes will be on US consumer price data on Tuesday as producers raised prices on Friday after raising doubts over the US Federal Reserve’s view that inflation was temporary.

Meanwhile, a September market sentiment survey published by Deutsche Bank showed that a 5 per cent-10 per cent correction in the equity market by the end of the year was overwhelming consensus.

Among individual shares, German online pet supply retailer Zooplus AG jumped 8.2 percent after Hellmann & Friedman raised its takeover offer to 3.29 billion euros ($3.89 billion) from an initial offer of 3 billion euros.

Associated British Foods dropped 3.7 percent as fourth-quarter sales at its Primark fashion business were lower than expected, with shoppers hurt by public health measures in its key markets.

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Wallneva fell 32.9 percent after the British government terminated a COVID-19 vaccine supply deal with a French company that was accused of breach of obligations denied by Wallneva.

by Shruti Shankar

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This News Originally From – The Epoch Times

Oil on recovery stakes, banks lift European stocks
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