European stocks rose to kick off the week on Monday, with gains led by Deutsche Lufthans AG and Bayer AG, alongside an upbeat business sentiment survey out of Germany.
But trade was thinner trade due to holidays in the U.K. and the U.S.
Extending earlier gains, the Stoxx Europe 600 index
rose 1.1% to 343.98, after gaining 3.6% last week. That marked the best weekly return since the week ended April 9. The French CAC 40 index
jumped 1.5% and the FTSE MIB Italy
gained 1%. U.K. markets will remain closed Monday for a Spring Bank holiday.
Leading regional indexes, the German DAX
surged 2% on a mix of data and corporate news. German business sentiment came in stronger than expected for May after a “catastrophic few months,” said the Ifo institute. The gradual easing of the lockdown “offers a glimmer of hope” for business, said Clemens Fuest, Ifo president.
Ahead of that data confirmed a 2.2% slowdown in German first-quarter growth, marking the biggest decline since the financial crisis and pushing the economy into a recession. It was followed Later in the morning, German business sentiment rose in May, beating forecasts as business expectations improved considerably, the Ifo Institute said Monday.
Shares of heavily-weighed Bayer AG
surged 8% after Bloomberg reported the company has reached deals with 50,000 to 85,000 U.S. cancer lawsuits connected to its weedkiller Roundup. Those sources cited said none of the deals have been signed yet.
Elsewhere, shares of Deutsche Lufthansa AG
climbed 7% on a report the struggling German airline was close to a bailout deal. Citing sources, Bloomberg reported that the committee in charge of Germany’s WSF Economic Stabilization Fund was expected to meet Monday to discuss a 9 billion-euro ($9.8 billion) rescue package.
Investors shrugged off on mounting tensions between the U.S. and China and rising Hong Kong unrest, as they remain “somewhat optimistic regarding the reopening of businesses across the globe and hope for more monetary and fiscal stimulus,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to clients.
Hong Kong police fired water cannons and tear gas at protesters in a popular shopping district on Sunday, as thousands mounted street protests against China’s plan to move to push for national security legislation on the city. Signs of fresh tensions in the region are adding to frictions that have been building between the U.S. and China over the coronavirus pandemic.
House national security adviser Robert O’Brien said Sunday that the U.S. will likely sanction China if that legislation goes through. For its part, China has cautioned over strained relations between…
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