The main European stock markets were up sharply at the start of the session Monday, taking full advantage of the momentum given to the share markets by the surge in Chinese markets.
The EuroStoxx 50 index was up 2.21%, the FTSEurofirst 300 by 1.69% and the Stoxx 600 by 1.7%.
In China, the CSI 300 of the country’s main capitalizations closed on a 5.67% jump, to the highest since June 2015, and on the Shanghai Stock Exchange, the SSE Composite took 5.71%, to the highest since April 2019.
Their rise primarily benefited financial stocks: the CSI 300 banking sub-index climbed 9.02%.
The MSCI index of the Asia-Pacific markets excluding Japan thus takes more than 1% and is evolving at the highest since February.
In Paris, the CAC 40 gained 2.01% at 5,107.69 points at 07:45 GMT, the highest since June 10. In London, the FTSE 100 takes 2.17%, and in Frankfurt, the Dax advances by 2.18%.
Like last week, signs of improving economic conditions are taking precedence in the eyes of investors, over the risks linked to the increase of coronavirus infection worldwide and particularly in the United States, where 15 states recorded an increase in the number of new cases in the first four days of July.
European Stock Market Quick Review
European stock markets start the week on a high note (+ 1.9% in London, + 1.5% in Frankfurt and Paris), encouraged by vigorous macroeconomic data published on the morning of July 7.
After falling 26.2% in April, the German industry orders rebounded 10.4% in May from the previous month, according to Destatis data.
Meanwhile, retail sales volume increased by 17.8% in the euro area and 16.4% in the EU in May compared to April, according to Eurostat. In April, it fell by 12.1% in the euro area and by 11.4% in the EU.
Commerzbank climbed more than 6% in Frankfurt after the Friday evening announcement of the resignation of its CEO Martin Zielke by the end of the year and the chairman of the supervisory board Stefan Schmittmann from August 3.
Aviva wins more than 4% in London, following the appointment of Amanda Blanc as CEO with immediate effect, replacing Maurice Tulloch, who decided to leave the office for reasons of family health.
Air France detailed on Friday its intention to cut 6,560 jobs and a thousand others in its regional subsidiary Hop! to adapt its workforce to the health crisis which is hitting hard the entire aviation sector.
Lower Yen Helping Shares Go Up Sharply
On the Tokyo Stock Exchange, the Nikkei index ended the day on a gain of 1.83% and recorded its best closing since June 11, taking advantage of the sharp rise in Chinese stocks. The Tokyo Stock Exchange went up sharply on Monday, Japanese export values taking advantage of the fall in the yen, despite concerns still alive about the growing spread of the global coronavirus pandemic, especially in the United States.
The star index Nikkei gained 0.96% to 22,520.81 points after 1:00 GMT and the broad index Topix took 0.94% to 1,566.94 points.
The gains in Tokyo could, however, be short-lived, because “the second wave of the new coronavirus is getting worse and several cities (in the world, editor’s note) are again considering imposing containments,” warned Okasan Online Securities in a note.