LONDON – European equities were higher 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 positive territory, excluding telecom, media and food and beverage.
European market sentiment was supported by positive market action elsewhere, although earnings and coronavirus developments remain in focus. The news that the more contagious British and South African variants of the coronavirus continue to spread through the US is expected to shake the markets. On Friday, Virginia health officials reported the first state case of the tribe first identified in South Africa.
On Sunday, South Africa stopped distributing AstraZeneca’s vaccine after a new study found it provides “minimal protection” against mild disease caused by the variant first discovered there. AstraZeneca’s shares were stable on Monday.
In the US, hopes for a deal on a stimulus plan have also risen after the Senate and House each passed a budget resolution on Friday, kicking off the reconciliation process that pushed President Joe Biden’s $ 1.9 trillion bailout package held by the Democratic. Senate can come. with a simple majority.
Monday there are no major European revenues. On the data front, the latest German industrial production figures are expected.
Shares of Dialog Semiconductor rose 17% on Monday after Renesas Electronics Corp said it agreed to purchase the Frankfurt-listed chip designer for 4.9 billion euros ($ 5.90 billion) in cash.
Meanwhile, shares of water and waste management company Veolia fell 1.2% on Monday after a French court blocked a hostile takeover of its smaller rival Suez, whose shares were 1.45% lower in early trading.
-CNBC’s Pippa Stevens contributed to this market report.
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