European Stocks Close High on Wall Street Gains

European stocks closed higher on Tuesday (28), boosted by strong Wall Street gains, even as concerns about Ômicron remain as France tightens restrictions and Covid-19 cases in Spain and the United Kingdom rise. .

The pan-European STOXX 600 index gained 0.62% to 488.50 points, its highest level in five weeks.

Demand for risk remains strong towards the end of the year, according to analysts, despite the threat of the Ômicron variant of the coronavirus hurting a global economy already facing slowing growth, supply bottlenecks and rising prices.

The STOXX 600 is heading into its best month since March of this year. The index has advanced 5.5% in December so far and is expected to rise about 22.4% this year, after falling 4% in 2020.

Although fears over the spread of the Ômicron strain persist, England will have no new restrictions against Covid-19 until the end of 2021, while the French government has said it will tighten measures to fight the virus but there will be no curfew on New Year’s Eve. The blue-chip CAC 40 rose 0.6%.

The rapid increase in Ômicron cases could derail, if not undo, central banks’ plan for tightening monetary policy next year, said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

• In LONDON, the Financial Times index retreated 0.02%, to 7,372.10 points.
• In FRANKFURT, the DAX index rose 0.81% to 15,963.70 points.
• In PARIS, the CAC-40 index gained 0.57% to 7,181.11 points.
• In MILAN, the Ftse/Mib index appreciated by 0.78%, to 27,444.93 points.
• In MADRID, the Ibex-35 index rose 0.77% to 8,688.90 points.
• In LISBON, the PSI20 index gained 0.47% to 5,560.79 points.