Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European stocks hover near record highs, Cineworld gains

Published 05/24/2021, 03:17 AM
Updated 05/24/2021, 12:19 PM
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 20, 2021. REUTERS/Staff

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 20, 2021. REUTERS/Staff

By Sruthi Shankar and Shreyashi Sanyal

(Reuters) -European stocks held close to record highs on Monday with technology stocks leading the charge, as investors counted on strength in corporate earnings to keep the market momentum going.

The pan-European STOXX 600 index rose 0.1% to 445.07 points, just below its record high of 446.19 points.

European technology stocks jumped 1%, while more economy-sensitive sectors such as banks and basic resources traded in the red.

"Our near-term focus on the reflation trade and sectors like energy and financials is not as interesting as the case for growth and technology," said Mark Haefele, chief investment officer of global wealth management at UBS.

"Although global stocks are now around 20% above pre-pandemic highs, a combination of strong earnings growth and reasonable valuations relative to still-low bond yields points to further upside."

Trading activity was subdued with markets in Austria, Denmark, Hungary, Norway, Switzerland and Germany closed for a holiday.

UK's Cineworld Group Plc rose 3.2% after animated adventure comedy "Peter Rabbit 2: The Runaway" pulled in more people than expected after a months-long COVID-19 lockdown.

Helping sentiment, European Central Bank President Christine Lagarde said on Friday it was still too early to discuss policy after the end of its 1.85 trillion euro ($2.3 trillion) emergency bond purchase scheme.

Her comments followed calls by some colleagues to consider tapering. The central bank is set to meet early next month to discuss its policy.

The STOXX 600 ended last week marginally higher despite worries about inflation as a survey showed euro zone business growth accelerated at its fastest pace in over three years in May.

There were some concerns as Germany's public health institute declared Britain and Northern Ireland a virus variant region, requiring anyone entering the country from the United Kingdom to quarantine for two weeks on arrival.

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 20, 2021. REUTERS/Staff

Italy's FTSE MIB lagged as several stocks traded ex-dividend.

($1 = 0.8192 euros)

Latest comments

hi
good morning
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.