European shares hovered around two-month highs on Monday after signs of a slowdown in the Chinese economy prompted investors to turn to defensive sectors such as healthcare and consumer goods, normally seen as immune to business cycles.
The pan-European STOXX 600 index rose 0.3%. It traded close to the levels needed to recoup all the losses from June, when fears over aggressive US interest rate hikes and a recession dominated sentiment.
Health stocks were among the biggest boosts for European stocks on Monday. AstraZeneca rose 2.3% after the drugmaker said its cancer drug Enhertu, developed with Japan’s Daiichi Sankyo, had slowed the progression of a form of advanced breast cancer in previously treated patients.
The food and beverage sector rose about 1% to lead the gains, while utilities gained 0.8%.
Those gains helped stem losses at automakers, the oil sector and miners, which are exposed to China, after the country’s central bank unexpectedly cut lending rates to revive demand after data showed the economy slowed in July.
STOXX is up more than 10% since hitting a year low in June, but remains down 9.3% for the year.
- In London, the Financial Times index advanced 0.11%, to 7,509.15 points;
- In Frankfurt, the DAX index rose 0.15% to 13,816.61 points;
- In Paris, the CAC-40 index gained 0.25% to 6,569.95 points;
- In Milan, the Ftse/Mib index appreciated by 0.49%, at 22,970.73 points;
- In Madrid, the Ibex-35 index registered an increase of 0.32%, to 8,427.00 points;
- In Lisbon, the PSI20 index rose by 0.43%, to 6,194.53 points.
Source: CNN Brasil
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