European stocks kick off November with fresh highs, banks rally
Send a link to a friend
[November 01, 2021] By
Anisha Sircar
(Reuters) - European stocks hit record
highs on Monday, entering November with a strong momentum on the back of
upbeat earnings reports, while a surge in banking shares buoyed euro
zone markets.
The pan-European STOXX 600 gained 0.7% to surpass its previous all-time
high marked in mid-August as the global mood was also supported by
Japan's post-election boost and stabilising coal prices in China. [GLOB/MKTS]
[MET/L]
Euro zone banks jumped 2.4% - hitting their highest level in more than
two years - as investors held on to their bets for two interest rate
hikes from the European Central Bank (ECB) next year. [GVD/EUR]
The banking-heavy Italian and Spanish indexes rose 1.4% and 1.2%,
respectively, while the German DAX and France's CAC 40 rose about 1%
each.
"There's a lot of earnings optimism, the feel-good factor of companies
bouncing back," said David Madden, markets analyst at Equiti Capital.
![](http://archives.lincolndailynews.com/2021/Nov/01/images/ads/current/LPL_small%201.gif)
"We spent so much time being afraid of the tapering in September and
early October. I think people are now going to see tapering as a
positive sign, that you can completely come full circle."
The STOXX 600 in October recorded its best month in seven with a 4.6%
rise. Investors are waiting for updates from the U.S. Federal Reserve,
which is expected to start tapering bond purchases. Policy adjustments
are also likely at the Bank of England and Reserve Bank of Australia
later this week.
[to top of second column] |
![](../images/110121PIX/2021-11-01T084108Z_1_LYNXMPEHA00Y3_RTROPTP_4_EUROPE-STOCKS_small.JPG)
The German share price index DAX graph is pictured at the stock
exchange in Frankfurt, Germany, October 29, 2021. REUTERS/Staff
![](http://archives.lincolndailynews.com/2021/Nov/01/images/ads/current/rohlfs_lda_072017.png)
Shares in German conglomerate Thyssenkrupp and steelmaker Salzgitter rose around
3% after the U.S. and the European Union ended a dispute over steel and
aluminium tariffs.
French drugmaker Sanofi gained 1.7% after HSBC upgraded the stock to "buy".
Volkswagen inched up 0.7% after saying its Skoda Auto would resume production on
Sunday following a two-week outage caused by the chip crisis.
Britain's FTSE 100 rose 0.6%. Barclays dipped 1.6% after it said Chief Executive
Officer Jes Staley will stand down following regulators' investigations into his
ties with convicted sex offender Jeffrey Epstein.
Pandora slumped 6% after an earnings update from the world's largest jewellery
maker showed weak sales growth at its own stores in the third quarter.
Markets are also monitoring the UN COP26 climate summit in Glasgow, which kicked
off on Sunday, where global leaders are expected to negotiate divisive issues
and set a new post-2025 climate finance commitment.
(Reporting by Anisha Sircar in Bengaluru; Editing by Subhranshu Sahu and Sriraj
Kalluvila)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |