FRANKFURT: European shares extended their winning streak on Monday, with investors focussing on developments from the trade war alongside the US Federal Reserve’s policy meeting later this week.
The pan-European STOXX 600 index ended 0.2% higher to mark its 10th consecutive session of gains, its longest winning streak since August 2021.
Germany’s main stock index jumped 1.3% to end near an all-time high. Other local bourses also ended in green, except France’s CAC 40, which slipped 0.5%. London markets were shut for a bank holiday.
On STOXX 600, insurers led sectoral gains and added 1.1%, while real estate gained 0.8% on Monday.
Also helping was the European aerospace and defence index, rising over 1%, and financials gaining 0.7%.
Energy shares, however, limited overall gains with a 0.6% fall, tracking weaker oil prices.
Dutch-listed shares of Shell fell 1.9%. A report said the oil major is working with advisers to evaluate a potential acquisition of rival BP.
Meanwhile, seemingly de-escalating trade tensions between the US and China have been a source of investor optimism in recent weeks.
The benchmark index has risen above the levels seen before April 2 when US President Donald Trump announced reciprocal tariffs on key trade partners, roiling global markets.
Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
“The markets are shrugging off the stress of trade tensions and are positioning for an essential trade deal in the coming days,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
The president’s announcement of imposing a 100% tariff on movies produced outside the United States did however add a layer of uncertainty.
Comments
Comments are closed for this article.