LONDON – European stocks rose sharply on Monday as global markets concentrated on falling U.S. Treasury yields and rose with positive news on the front of the coronavirus vaccine.
The pan-European Stoxx 600 jumped 1.7% in early business, with core resources adding 2.7% to gain advantages as all sectors and major countries entered positive territory.
The sharp rise in European markets comes after US stock futures rose sharply in overnight trading as Treasury yields continued to fall from last week’s highs. The shares had been under pressure in recent weeks as rising yields made the shares seem less attractive to investors.
Major averages rose in February, bolstered by a strong earnings season, positive news about vaccine launches and hope for another stimulus package. The House early Saturday passed a $ 1.9 trillion Covid relief law, the American Rescue Plan Act of 2021. The Senate will now consider the legislation.
More positive news on the Covid-19 vaccine front also surfaced this weekend, as the U.S. Centers for Disease Control and Prevention advisory group voted unanimously Sunday to recommend vaccine use. Covid-19 single shot from Johnson & Johnson for people 18 years and older. The company plans to ship 4 million doses initially.
Meanwhile, in Asia and the Pacific, shares traded on Monday although data releases show that growth in China’s manufacturing activity slowed in February.
China’s official Manufacturing Purchasing Managers ’Index (PMI) for February reached 50.6 over the weekend, according to data from the country’s National Statistics Office. This was lower than the January 51.3 reading, but still above the 50 level that separates expansion from contraction.
A private survey released on Monday also showed China’s manufacturing activity in February growing at a slower pace.
On Monday in Europe, profits came from Bunzl and the Bank of Ireland, and a number of communications include manufacturing PMI data, UK mortgage approval data and inflation figures from Italy and Germany.
In terms of individual stock price movement, British home builder Persimmon and parent company British Airways, IAG, rose more than 5% in early business to lead the European blue chip index.
– CNG’s Maggie Fitzgerald and Eustance Huang contributed to this market report.
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