🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Stocks - Europe Higher; Reopening Economies Prompt Optimism

Published 11/05/2020, 08:46
Updated 11/05/2020, 08:50
© Reuters.
EUR/USD
-
UK100
-
XAU/USD
-
FCHI
-
DE40
-
EZJ
-
GC
-
LCO
-
CL
-
GLD
-
ERICAs
-
USO
-
UGLDF
-

By Peter Nurse 

Investing.com - European stock markets posted gains Monday, amid growing optimism as more countries start to reopen their economies.

At 3:45 AM ET (0735 GMT), the DAX in Germany traded 0.5% higher, and France's CAC 40 rose 0.2%. The U.K.'s FTSE index gained 0.8%, making up for lost time as Friday was a holiday.

France, the second largest economy in the euro zone, is set to emerge cautiously from one of Europe's strictest lockdowns on Monday, while  the U.K., now the hardest hit country in Europe in terms of deaths, has announced tentative plans to lessen social distancing measures. 

This follows a number of European countries -- including Denmark, Norway, Spain, Italy, Austria and Germany -- which have also started to lift lockdown measures. 

The European economy has been hard hit by the measures taken by the various national governments to shut down their respective economies to curb the spread of the Covid-19 virus.

European Central Bank President Christine Lagarde said, a couple of weeks ago, that the euro-area economy could shrink by as much as 15% as a result of the pandemic.

In corporate news, Ericsson (BS:ERICAs) stock climbed 0.9% after lifting its forecast for 5G subscriptions globally to around 2.8 billion by 2025 from 2.6 billion seen previously, as a consequence of the coronavirus outbreak. German consumer products maker Henkel was flat after reporting hat the pandemic fueled robust sales of cleaning products in the first quarter, while payments company Wirecard stock rose 8.8% after the company appointed a new chief compliance officer. It's stil fallen 30% since a report by KPMG into suspect accounting practices failed to clear management's name, however. 

On the flip side, easyJet (LON:EZJ) stock slumped over 7% after the U.K. government announced over the weekend plans to introduce a 14-night quarantine on incoming travellers.

Oil futures slipped back Monday, consolidating after recent gains had pushed the sector from the all-time lows seen recently.

At 3:45 AM ET, U.S. crude June futures traded 2.2% lower at $24.20 a barrel. The international benchmark Brent contract fell 2.1% to $30.32.

Elsewhere, gold futures fell 0.3% to $1,708.80/oz, while EUR/USD traded at 1.0833, down 0.1%.

Latest comments

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.