European markets look to rebound from last week’s losses


European stocks bounced Monday morning, looking to recover from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar.

The pan-European Stoxx 600 jumped 1.5% in early trade, with banks surging 4.1% to lead gains as all sectors and major bourses entered positive territory.

The European blue-chip index had closed 3.7% lower for the week on Friday after a choppy session, with global markets roiled by a resurgence in coronavirus cases on the continent and further afield.

However, markets are receiving a boost Monday from signs that the Chinese economic recovery is gathering steam, with fiscal stimulus, pent-up demand and positive export data boosting sentiment and meaning European markets are set for a positive handover from Asia-Pacific.

The U.S. has seen a rise in daily cases ahead of Tuesday’s first presidential debate between President Donald Trump and Democratic challenger Joe Biden, with a Supreme Court fight also looming over Republican efforts to replace the late Justice Ruth Bader Ginsburg with conservative Amy Coney Barrett before the Nov. 3 election.

In Europe, Bank of England policymaker Silvana Tenreyro said in an interview published over the weekend that the central bank’s investigation into whether negative interest rates could help the British economic recovery has yielded “encouraging” results.

In corporate news, Reuters reported Sunday, citing sources, that Luxembourg steel giant ArcelorMittal is in talks to merge its U.S. assets with Cleveland-Cliffs, the largest producer of iron ore pellets in the U.S.

Daimler CEO Dieter Zetsche announced over the weekend that he would relinquish his role as chairman of the German automaker, with investors now calling for an independent figure to lead the supervisory board.

Commerzbank has named Manfred Knof, formerly head of German retail banking at Deutsche Bank, as its new CEO. Knof will replace Martin Zielke, who resigned in July along with chairman Stefan Schmittmann following a period of intense pressure from activist investors.

Siemens Energy is set to debut on the Frankfurt stock exchange Monday following its spinoff from tech giant Siemens.

European Central Bank President Christine Lagarde is scheduled to appear before the Committee on Economic and Monetary Affairs at 3:45 p.m. CEST.

Biggest movers

HSBC shares surged 10% in early trade, on track for their largest daily percentage gain in over a decade after China’s Ping An Insurance announced that it would increase its stake in Europe’s largest lender.

The rally extended across the banking sector, with Deutsche Bank, Standard Chartered and Commerzbank all gaining more than 5%.

Swiss hearing aid manufacturer Sonova also climbed 10% after raising its guidance.

At the bottom of the European benchmark, airplane engine manufacturer Rolls-Royce slid a further 4.5%.



Source link

Discover

Sponsor

Latest

PM Boris Johnson outlines more measures

A couple wearing protective face coverings chat in the street in Liverpool city centre, north-west England on September 18, 2020.OLI SCARFF | AFP...

Apple invests in world’s largest onshore wind turbines

Apple's Viborg data centerAppleApple is investing in the construction of two of the world's largest onshore wind turbines, advancing its efforts to become...

Australian dollar amid coronavirus and recession

A man wearing a face mask walks before the Harbour Bridge in Sydney, Australia on July 22, 2020.Saeed Khan | AFP | Getty...

FCA ‘Know & Go’ owner education app debuts with 2021 Ram 1500 TRX

FCA has developed a new app called “Know & Go,” and it’s debuting with the 2021 Ram TRX. The purpose of the app...

Facebook’s ad chief talks ad boycotts

President of Global Marketing Solutions for Facebook, Carolyn Everson attends the forum titled "Poverty Alleviation & Economic Development" within the One Young World...