European stocks higher as Asian markets rise

The pan-European Stoxx 600 was up 0.65% in early deals, with all major European bourses higher

European stocks were higher at the start of the first session of the week, on the back of positive Asian markets and a potential £1.47bn ($1.86bn) bid for UK house builder Countryside Partnerships.

The pan-European Stoxx 600 was up 0.65% in early deals, with all major European bourses higher.

Markets in the US are closed Monday for the Memorial Day holiday, after the S&P 500 and the Dow Jones Industrial Average on Friday snapped losing streaks to post their strongest week since November 2020.

Asia-Pacific rose sharply as sentiment was boosted by a relaxation of Covid controls over the weekend in the major Chinese cities of Beijing and Shanghai.

Oil prices were also higher, with Brent crude trading around $115 dollars a barrel, as European Union leaders were set to meet to discuss a sixth package of sanctions against Russia over its invasion of Ukraine.

This week price action is likely to be more bullish amid risk-on sentiment lifting equities and cryptos and amid concerns about inadequate supply driven by OPEC+ and the next package of EU sanctions, said Interactive Investor head of investment Victoria Scholar.

The softer US dollar is also helping to support the market, which after a strong uptrend has taken a pause for breath, making oil less expensive for importers. At least for now, concerns about slowing demand are taking a back seat particularly as we head into peak US driving season, she said.

In equity news, shares in Countryside soared after San Francisco-based Inclusive Capital on Monday said it was looking to make a £1.47bn ($1.86bn) bid, but accused the company of refusing to engage with it.

In-Cap, which holds a 9.2% stake in Countryside, said the possible offer was to buy the remaining shares in the house builder it does not already own for 295 pence each.