The main European stock exchanges rose on Monday, with the Stoxx 600 moving on a record trajectory, although trading volume is expected to be lower in the first session of the year, as markets in the United Kingdom and Ireland are closed due to holidays.
The positive start for Europe in the new year comes after one impressive rally of the Stoxx 600 in 2021, as European economies recorded strong rates of recovery after the nightmare 2020, with the help of the European Central Bank’s highly facilitative policies and fiscal stimulus packages. These gains, however, overshadowed at the end of the year concerns about the micron mutation of the coronavirus that has led to an outbreak of cases worldwide. However, the Stoxx 600 recorded gains of 22% in 2021, while the FTSE and DAX strengthened by about 15% per year and the French CAC made a “jump” of almost 30%.
At the beginning of 2022, hopes for a stable economic recovery in Europe remain despite the uncertainty caused by the new pandemic wave with the highly contagious Omicron strain dominating. The outbreak has led to the cancellation of thousands of flights during the Christmas and New Year holidays.
The increase in the number of Covid-19 cases follows an “almost vertical” curve, Anthony Fauci said today, a top White House adviser on the health crisis. “We are in the middle of a very strong wave,” Fauci said in an interview with the American television network ABC, noting that the increase in cases, “which is almost vertical”, is “unprecedented”, with an average of almost 400,000 young people. infections per day. “Hospitalizations are also on the rise, but not at the same rate,” he said.
In this climate, the pan-European index Stoxx 600 is up 0.6% to 490.76 points, surpassing the record of 490.58 points set last November. The automotive industry leads the profits with an increase of 1.3%.
In the individual dashboards, the German index DAX adds 0.75% exceeding 16,000 units and the French CAC 40 gains 0.87% to 7,215 points.
On the periphery, the Italian FTSE MIB notes an increase of 0.82% to 27,570 points and the Spanish IBEX 35 climbs 0.6% to 8,765 points.
In the individual shares German airline Lufthansa jumps 5% after upgrading its stake in Citi to “buy”.
The indicators in the Asia-Pacific region show a mixed picture at the first meeting of 2022, with markets in Australia, mainland China and Japan closed today due to a holiday.
In the Hong Kong Hang Seng fell 0.62%, while the trading of the shares of the Chinese real estate company China Evergrande Group was suspended, without announcing the reason for the suspension. Hong Kong-listed Evergrande-listed companies have a mixed picture. China Evergrande New Energy Vehicle Group is up 9.09%, while Evergrande Property Services is down 0.38%.
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