European stocks rose on Monday, led by cyclical sectors sensitive to the economy, as sentiment was boosted by hopes for a faster recovery and multi-billion dollar deals in the region.
* The pan-European STOXX 600 index rose 0.3%, adding gains to a 3.5% rise in the prior week, in line with optimism in global markets that sent Wall Street and a global equity index to highs historical by the hopes of stimuli [MKTS/GLOB]
* Dialog Semiconductor rose 16% to its highest level in two decades after Japanese chipmaker Renesas Electronics Corp agreed to buy the Frankfurt-listed chip designer for 4.9 billion euros ($ 5.89 billion) in cash.
* Cyclical sectors, which include commodities, banks and chemicals, increased between 0.8% and 2.2%, and were among the highest gains in the main index. Tech stocks gained 1.5%.
* The global launch of COVID-19 vaccines and increased M&A activity have helped reduce recent pessimism around equities. The STOXX 600, however, has yet to reach pre-pandemic levels, and is at around 5% of the 2020 highs.
* “We are underweight European equities,” BlackRock strategists said in a note. “The market has a relatively high exposure to finance pressured by low rates.”
* Data from Germany showed industrial production stalled in December after lockdowns to contain the COVID-19 pandemic held back the manufacturing sector in Europe’s largest economy.
* The main Frankfurt index closed flat, retreating from session highs.
(1 dollar = 0.8315 euros)
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.