Europe: Stoxx 600 posts longest winning streak in nearly four years; focus on Fed, tariff updates
EUROPEAN shares extended their winning streak on Monday, with investors focusing on developments from the trade war alongside the US Federal Reserve’s policy meeting later this week.
The pan-European Stoxx 600 index ended 0.16 per cent higher at 537.31 points to mark its 10th consecutive session of gains, its longest winning streak since August 2021.
Germany’s main stock index jumped 1.3 per cent to end near an all-time high. Other local bourses also ended in green, except France’s CAC 40, which slipped 0.5 per cent. London markets were shut for a bank holiday.
On Stoxx 600, insurers led sectoral gains and added 1.1 per cent, while real estate gained 0.8 per cent on Monday.
Also helping was the European aerospace and defence index, rising over 1 per cent, and financials gaining 0.7 per cent.
Energy shares, however, limited overall gains with a 0.6 per cent fall, tracking weaker oil prices.
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Dutch-listed shares of Shell fell 1.9 per cent. A report said the oil major is working with advisers to evaluate a potential acquisition of rival BP.
Meanwhile, seemingly de-escalating trade tensions between the US and China have been a source of investor optimism in recent weeks.
The benchmark index has risen above the levels seen before April 2 when US President Donald Trump announced reciprocal tariffs on key trade partners, roiling global markets.
Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
“The markets are shrugging off the stress of trade tensions and are positioning for an essential trade deal in the coming days,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
The president’s announcement of imposing a 100 per cent tariff on movies produced outside the United States did however add a layer of uncertainty.
The focus will also be on central banks’ decisions, especially from the Fed, which is widely expected to leave rates steady on Wednesday. The Bank of England’s rate decision is also due this week.
Erste Group jumped 6.7 per cent after the Austrian lender said it has acquired 49 per cent of Polish-based Santander Bank Polska and 50 per cent of Santander TFI, following an agreement with Spanish bank Banco Santander SA.
Elsewhere, a survey showed euro zone investor morale recovered more strongly than expected in May after declining sharply last month due to US tariffs, though it was still at a lower level. REUTERS
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