13 Sept 2021
Automakers and Banks lifted European Stocks on a Strong Recovery
The Index Today
European stocks were seen high on Monday, with automakers, banks and oil shares providing early gains as investors expected on a strong euro zone economic recovery to surpass global slowdown worries.
According to the reports from Reuters, the pan-European STOXX 600 index was up 0.4%, as of 0708 GMT, recovering lost ground after hitting a three-week low last week. Asian stocks, however, slipped following news of fresh regulatory crackdown on Chinese firms. [MKTS/GLOB]
Economy-sensitive sectors including banks, automakers, oil and gas and construction and materials rose between 0.8% and 1.2%. The European Central Bank last week raised its growth and inflation projections for this year and beyond as the euro zone economy recovers quicker than expected.
The German online pet supplies' retailer Zooplus AG also jumped 7.8% after Hellman & Friedman raised its takeover offer to 3.29 billion euros ($3.89 billion) from an initial offer of 3 billion euros.
Recently, the global stocks have come under pressure after months-long gains on worries about inflation, tighter COVID-19 curbs in Asian countries, China's regulatory moves, and growing views that central banks will soon start paring stimulus.
While those concerns remain, European investors took comfort as the European Central Bank last week raised its growth and inflation projections for this year and beyond, as the euro zone economy recovers quicker than expected from the pandemic shock.
Daniel Grosvenor, director of equity strategy at Oxford Economics said in a note that, "Regionally, we maintain our preference for non-U.S. markets, where there is scope for catch-up."