PARIS (Reuters) – Major European stocks rose in early trading on Monday on news from China as early inflation data from Germany sent government bond yields higher.
In Paris, the CAC 40 gained 0.86% to 6,571.54 points at 08:13 GMT. In London, the FTSE 100 takes 0.32% and in Frankfurt, the Dax advances by 0.74%.
The EuroStoxx 50 index is up 0.96%, the FTSEurofirst 300 0.68% and the Stoxx 600 0.77%.
The session should be quieter than usual due to the absence of some of the investors, the day being a holiday in the United States for Memorial Day.
European equities continued their advance from last week on renewed optimism about the global economy following the release of encouraging data on Friday in the United States, a slight decline in expectations for Fed rate hikes and the announcement of a relaxation of measures against the COVID-19 epidemic in China.
This last point benefits luxury stocks, which are particularly exposed to the Chinese market: LVMH, Hermès and Kering gained from 3.17% to 3.93%, among the strongest increases in the CAC 40.
Red lantern of the index, Sanofi fell by 3.39%, the laboratory having announced that the start of a trial in real conditions of use of Cialis, a treatment for erectile dysfunction, with a view to its transfer to the self-medication market had been deferred by the US health authority “due to reasons related to the trial protocol”.
Elsewhere in Europe, Siemens is up 3.17% after winning an 8.1 billion euro contract to build around 2,000 kilometers of high-speed rail in Egypt.
The first inflation estimate for Germany in May will be released at 12:00 GMT. The state of North Rhine-Westphalia reported an acceleration in consumer prices to 8.1%, above the Reuters consensus for the whole country of 8.0% at HICP standards, pushing yields higher zone bondholders euro.
That of ten-year German gains ten basis points to 1.063%, the highest since May 18.
“Inflation in North Rhine-Westphalia confirms upside risks [des données nationales] which have already reached an all-time high, reigniting speculation of a 50 basis point European Central Bank rate hike,” Commerzbank analysts said in a note.
(Written by Laetitia Volga, edited by Jean-Michel Bélot)
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