LONDON (Reuters) – European equities rose sharply on Monday as global markets boosted and strengthened U.S. Treasury yields through positive news on the coronavirus vaccine front.
The pan-European Stoxx 600 rose 1.7% in early trading, with basic resources adding 2.7% to make a profit as all sectors and major wallets entered positive areas.
The sharp rise for European markets comes after US futures rose sharply in overnight trading as last week’s Treasury yields continued to fall from their highs. Equities have been under pressure over the past few weeks as rising returns have made equities less attractive to investors.
Major averages rose in February, bolstered by a strong earnings season, positive news about vaccine vaccinations and hopes for another stimulus package. The House passed a $ 1.9 billion Covid bill, the 2021 U.S. Rescue Plan Act, early Saturday. The Senate will now consider the legislation.
More positive news on the Covid-19 vaccine front also emerged this weekend when the U.S. Advisory Board for Disease Control and Prevention Centers unanimously voted Sunday to recommend the use of Johnson & Johnson’s single-use Covid-19 vaccine for people 18 years and older. older. The company initially expects to ship 4 million doses.
Meanwhile, shares in the Asia-Pacific traded higher despite the release of data showing that China’s growth in manufacturing activity slowed in February.
Data from the country’s national bureau of statistics showed that the official purchasing managers’ index (PMI) for China came in at 50.6 this past weekend. It was lower than the reading of 51.3 in January, but still above the 50 level separating the expansion from the contraction.
A private survey released Monday also showed that China’s manufacturing activity grew more slowly in February.
On Monday in Europe, earnings came from Bunzl and the Bank of Ireland, and a series of data releases include PMI data for manufacturing, UK approval data and inflation figures from Italy and Germany.
In terms of the individual share price movement, British home builder Persimmon and the older IAG of British Airways both climbed more than 5% in early trading to lead the European blue chip index.
CNBC’s Maggie Fitzgerald and Eustance Huang contributed to this market report.
Sign in to CNBC PRO for exclusive insights and analysis, and live workday programming from around the world.