European shares hit their highest in nearly a month on Monday, as optimism spurred on by the easing of restrictions against Covid-19 and new stimulus in China.
Officials at Shanghai’s Chinese business center will lift many of the conditions for businesses to resume work from Wednesday, while the city also announced an action plan to boost the economy, keeping hopes for growth and demand in the second-largest economy. of the world.
The pan-European STOXX 600 index closed up 0.59% to 446.57 points, a level not seen since early May, with luxury companies getting significant demand from China giving the biggest boost to the referential index.
Louis-Vuitton owner LVMH, Hermès, Pernod Ricard and Burberry were up between 0.6% and 4.4%.
“There is a big sigh of relief… that more stringent restrictions will be eased, particularly in Shanghai and Beijing, because (investors) are really concerned about the current Covid zero strategy and its impact on China’s economy,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Sector gains were broad, led by a 2.0% jump in technology stocks.
- In London, the Financial Times index advanced 0.19%, to 7,600.06 points;
- In Frankfurt, the DAX index rose 0.79% to 14,575.98 points;
- In Paris, the CAC-40 index gained 0.72% to 6,562.39 points;
- In Milan, the Ftse/Mib index appreciated by 0.70%, at 24,808.65 points;
- In Madrid, the Ibex-35 index registered a drop of 0.03%, at 8,930.80 points;
- In Lisbon, the PSI20 index rose by 0.87%, to 6,294.98 points.
Source: CNN Brasil
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