European stocks climbed to near one-month high on Monday, with investors looking more optimistic after Chinese authorities announced they would relax some of the draconian measures they have taken in recent weeks to curb COVID-19 transmission in the country. seriously affecting business as well as global supply chains.
Authorities in China’s Shanghai Mall have given the go-ahead for business reopening since Wednesday, announcing an action plan to boost the economy. This has rekindled investor hopes that growth and demand in the world’s second-largest economy will improve in the coming months, boosting the global economy.
On the board, the pan-European STOXX 600 index strengthened by 0.6% to 446.57 points, returning to the levels that were at the beginning of May.
Luxury companies with strong presence in China, such as LVMH, Hermes and Burberry gained from 0.6% to 4.4%. The technology sector also recorded strong gains of 2%.
The German DAX strengthened 0.8% to 14,575.98 points, the French CAC 40 gained 0.7% to 6,562.39 points, while the British FTSE 100 closed with small gains of 0.2% to 7,600.06 points.
In the periphery, the Italian FTSE MIB gained 0.7%, while the Spanish IBEX 35 closed with small losses of 0.03%.
At the macro of the day, the data announced today in Germany showed jump in inflation to a new record in Mayat 8.7% after rising 7.8% in April, beating analysts’ estimates at Bloomberg that they expected it to rise to 8.1%.
Eurostat data on inflation in the Eurozone will be released later this week, which is expected to show a further rise after last month’s high, intensifying pressure on the European Central Bank to tighten its policy.
Source: Capital
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