Europe shares rise as banks, technology stocks bounce back
written by Bella PalmerTechnology stocks led sectoral gains with a 1.6% rise after dropping almost 2% last week, while European banks gained around 1% after dropping more than 8% last week
European shares rose on Monday, with banks and technology stocks bouncing back from losses last week after markets were unsettled by political uncertainty in France, while Danish insurer Topdanmark soared on Sampo's buyout bid.
As of 0816 GMT, the pan-European STOXX 600 was 0.3% higher, coming off its worst weekly percentage drop so far this year.
Technology stocks led sectoral gains with a 1.6% rise after dropping almost 2% last week, while European banks gained around 1% after dropping more than 8% last week.
European markets have been under pressure after President Emmanuel Macron called for a snap election after a routing of his ruling centrist party by Marine Le Pen's eurosceptic National Rally in the European parliament elections.
We are seeing the divergence between European and U.S. equities become very clear. France has evidenced the most because of the snap election and the concern that right-wing parties could be gathering more and more, according to Daniela Hathorn, a senior market analyst at Capital.com.
There is a lot of indecision and a lot for the markets to take in, Hathorn added.
Most bourses in the region gained on the day, with France's benchmark CAC 40 adding 0.5% after dropping more than 6% last week.
In contrast, basic resources declined 0.7% as most metal prices slid after data showed top consumer China's industrial output was weaker than expected in May.
Separately, Italian EU-harmonised consumer prices (HICP) gained 0.2% month-on-month in May and were also 0.8% higher from the year earlier, confirming preliminary data.
Inflation data in the UK along with a wider euro zone number are due later this week, which is also packed with interest rate decisions from central banks in Switzerland, Norway and the UK.
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