Close of Europe: Stocks continue to climb until the end of the month
European shares continued to climb towards the end of May following news that Covid restrictions in Shanghai would be lifted two days later and a potential £1.47bn bid for the builder of British houses Rural partnerships.
In the background, European Union leaders were due to announce plans for a partial embargo on Russian oil exports, Washington moved closer to supplying longer-range missile launchers to Kyiv, and Russian President Vladimir Putin said he was ready to facilitate grain exports, including from Ukraine. , alongside Turkey.
The pan-European Stoxx 600 gained 0.59% to 446.57, Germany’s Dax gained another 0.79% to 14,575.98 and the Cac-40 gained 0.72% to 6,562.39.
Prior-date Brent was higher alongside, rising 2.3% to $121.72 a barrel.
The euro/dollar also rose to 1.078 amid data showing another strong rise in German consumer prices.
According to a first estimate of the Federal Statistics BureauGermany’s consumer price index rose 0.9% month-on-month in May, pushing the annual inflation rate from 7.4% the previous month to 7.9% (consensus: 7.6% ).
U.S. markets were closed Monday for the Memorial Day holiday, after the S&P 500 and Dow Jones Industrial Average snapped losing streaks on Friday to post their strongest week since November 2020.
Asia-Pacific rose sharply as sentiment was boosted by a relaxation of Covid controls over the weekend in the major Chinese cities of Beijing and Shanghai.
Signs that China was becoming a little more tolerant of covid infection rates helped push up the stock prices of luxury goods companies, said Hargreaves Lansdown analyst Susannah Streeter.
Burberry up 2.1%, LVMH increased by 2.6% and Hermes International jumped more than 4%.
“The number of covid cases in China has been a source of weakness for companies selling high-end products as the market is still seen as the industry’s growth engine, but now there are high hopes that big spenders will return to boutiques to get their hands on coveted brands,” Streeter said.
In equity news, shares of Countryside soared 19% to 283.0p after San Francisco-based Inclusive Capital said on Monday it was seeking a £1.47 billion bid, but accused the company of refusing to engage with her.
In-Cap, which has a 9.2% stake in Countryside, said the possible offer was to buy the remaining shares in the homebuilder it does not already own for 295.0 pence each.