Latest News European markets rally as banks bounce; HSBC up 10%

European markets rally as banks bounce; HSBC up 10%

-

- Advertisment -

[ad_1]

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.

READ MORE  UK economy grew 6.6% in July as gradual recovery continues
READ MORE  Coronavirus: Three further deaths and 811 new cases

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%.

READ MORE  Shares of KKR-owned defense firm slide on market debut in Frankfurt

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

READ MORE  SoftBank’s Arm sale hits a snag as UK opposition party warns of risk to jobs and digital sovereignty

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

[ad_2]

Source link

Leave a Reply

Latest news

- Advertisement -

Mail-in voting amplified Red and Blue Vermont; the effect turned out to be fairly even

‘Murder on Middle Beach’ director was ‘willing to do whatever it takes’ to probe mom’s murder

With HBO’s four-part docuseries, “Murder on Middle Beach,” premiering Sunday, the 29-year-old Connecticut director explores the life...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you