LONDON – European equities were higher on Monday with markets following positive sentiment in Asia and the US
The pan-European Stoxx 600 index was 0.4% higher in morning trading, with most sectors in a positive area apart from telecommunications, media and food and beverages.
Sentiment in the European market has been driven by positive market actions elsewhere, although earnings and the development of the coronavirus are still in focus. News that the more contagious British and South African variants of the coronavirus are still spreading in the US is expected to create rattlesnakes. On Friday, health officials in Virginia reported the state’s first case of the strain identified in South Africa.
On Sunday, South Africa halted the distribution of AstraZeneca’s vaccine after a new study found that it provided ‘minimal protection’ against mild diseases caused by the variant first discovered there. AstraZeneca’s shares were flat on Monday.
In the US, hopes for a stimulus plan agreement also rose after the Senate and House on Friday each adopted a budget resolution that began the reconciliation process with which President Joe Biden’s $ 1.9 billion rescue package by the Democratic Senate kon kom. by a simple majority.
No major European earnings are due on Monday. As for the data, the latest German production figures are available.
Shares of Dialog Semiconductor rose 17% on Monday after Renesas Electronics Corp. said it had agreed to buy the Frankfurt-listed disk designer for 4.9 billion euros ($ 5.90 billion) in cash.
Meanwhile, shares of water and waste management firm Veolia fell 1.2% on Monday after a French court blocked any hostile takeover of its smaller rival Suez, whose shares had previously traded, down 1.45%.
-CNBC’s Pippa Stevens contributed to this market report.
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