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European Shares Rally On Upbeat Data

stockmarkets dec24 01mar21 lt

European stocks rallied on Monday as expectations of faster economic recovery and stimulus hopes helped investors shrug off inflation fears.

Eurozone PMI Manufacturing was finalized at a three-year high of 57.9 in February, up from January's 54.8, adding to optimism about economic recovery.

The pan European Stoxx 600 jumped 1.8 percent to 412.37 after losing 1.6 percent on Friday. The German DAX rose 1.3 percent, France's CAC 40 index climbed 1.7 percent and the U.K.'s FTSE 100 was up 1.8 percent.

Danone SA shares rallied 2.5 percent. The food company has reached an agreement with COFCO Dairy Investments Limited to convert Danone's stake in China Mengniu Dairy Co. Ltd., currently held indirectly, into a direct holding.

Hopes of a vaccine-led economic recovery and more U.S. stimulus boosted commodity-related stocks, with miners Anglo American, Antofagasta and Glencore climbing 2-3 percent.

Oil & gas company BP Plc jumped 2.5 percent, Total SE gained 1.7 percent and Royal Dutch Shell added 2.1 percent.

Housebuilding stocks were rallying in the U.K. amid hopes that Finance Minister Rishi Sunak would unveil measures to buy homes buyers.

Persimmon surged nearly 6 percent, Taylor Wimpey advanced 5.2 percent and Barratt Developments gained 4.5 percent.

Pharmaceutical company AstraZeneca rose 1.6 percent after reportedly selling its 7.7 percent stake in Moderna Inc for more than $1 billion.

British Airways-owner IAG soared 4.7 percent on expectations of a rebound in travel demand during summer.

BayWa AG shares rose over 2 percent. The operator in the agriculture, building materials and energy sectors reported that its fiscal 2020 preliminary earnings before interest and tax or EBIT increased 14.3 percent to 215.3 million euros from 188.4 million euros last year.

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