European Shares Gain On Economic Recovery Hopes

European stocks were moving higher on Monday amid optimism that a slowdown in the spread of coronavirus in different parts of the world and vaccine rollout efforts will result in a swifter global economic recovery.

The pan European Stoxx 600 rose 0.4 percent to 410.98 after ending on a flat note Friday. The German DAX edged up 0.2 percent, France’s CAC 40 index gained 0.6 percent and the U.K.’s FTSE 100 was up half a percent.

Swiss specialty chemicals company Sika AG added 1.3 percent. The company has agreed to acquire Kreps LLC, a mortar manufacturer in Russia.

Dutch paints and coatings maker Akzo Nobel N.V. gained 1.4 percent after saying it does not plan to pursue acquisition of Tikkurila.

BP Plc rose 1.3 percent in London and Royal Dutch Shell edged up slightly after oil prices surpassed $60 a barrel on the back of tightened global oil supplies and renewed hopes over the passing of the U.S. stimulus package.

Rolls-Royce Holdings declined 1.6 percent after reports that it plans to shut down its jet engine factories this summer due to insufficient work.

Metro AG shares rallied 2 percent. The German wholesale retailer is set to appoint Steffen Greubel as new chief executive of the company with effect from May 2021.

1&1 Drillisch AG surged 6 percent. The telecommunications company said that its subsidiary, Drillisch Online GmbH, has received the arbitral award in the arbitration proceedings regarding Price Review 1 under the existing MBA MVNO agreement with Telefónica.

Dialog Semiconductor shares soared as much as 16 percent. The chip designer confirmed that it is in advanced discussions with Renesas Electronics Corp. regarding a possible all cash offer of 67.50 euros per Dialog share for Dialog.

In economic news, Germany’s industrial production remained flat in December, data from Destatis revealed.

Industrial production was unchanged compared to previous month, following a revised 1.5 percent rise in November. Economists had forecast a 0.3 percent rise for December.

On a yearly basis, the decline in industrial output eased to 1 percent from 2.5 percent a month ago.

Source: Read Full Article