🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UPDATE 2-European shares mark best close in 10 months on Brexit, vaccine cheer

Published 28/12/2020, 10:55
© Reuters.
FCHI
-
DE40
-
STOXX
-
SXEP
-
SXAP
-
IBEX
-

* Germany's Delivery Hero tops STOXX 600
* Europe launches cross-border vaccination programme
* Germany's DAX index ends at record high
* London markets shut for Boxing Day
* Automakers cheer Brexit deal

(Updates to market close)
By Shashank Nayar and Ambar Warrick
Dec 28 (Reuters) - European shares marked their strongest
close in 10 months on Monday, with German shares hitting a
record high as relief over long-awaited U.S. coronavirus relief,
a Brexit trade deal and a vaccine programme lifted spirits in
thin holiday trade.
U.S. President Donald Trump on Sunday signed into law a $2.3
trillion pandemic aid and government spending bill, causing some
optimism over near-term economic prospects. The launch of a cross-border European vaccination programme
on Sunday also fuelled hopes of a pandemic-free second half in
2021 and of a strong economic rebound. Britain and the European Union signed a Brexit trade deal
late on Thursday, preserving several trade provisions for both
sides and limiting the scale of disruption resulting from the
divorce. The benchmark European stock index .STOXX rose 0.7% in a
fourth straight day of gains, while German stocks .GDAXI ended
1.5% higher at a record peak.
German food delivery firm Delivery Hero DHER.DE topped the
STOXX 600 with a 9.1% gain, ending at a record high after it
said it will sell South Korean food delivery app Yogiyo as part
of the conditions for regulatory approval of its takeover of top
South Korean food delivery app owner Woowa Brothers.

Automobile makers were among the top boosts to the German
index, given that the country is a major supplier of autos to
the UK. The striking of a trade deal appeared have cleared
several regulatory doubts over the future of the EU-UK auto
supply chain.
"We can finally breathe a big sigh of relief and say that
chaos over the stimulus bill is over," said Hussein Sayed, chief
market strategist at FXTM.
"A sell-off has been averted and this could provide one last
boost to risk assets in the last four trading days of the year."
However, many aspects of Britain's future relationship with
the EU remain to be hammered out, possibly over years..
Huge amounts of stimulus and vaccine optimism have seen the
STOXX 600 recover nearly 43% from its March lows, though it is
on course to end the year about 4% lower due to a severely
damaging second wave of coronavirus infections.
Among other European bourses, France's CAC 40 index .FCHI
and Spain's IBEX .IBEX ended 1.2% and 0.5% higher,
respectively.
Dutch technology firm Prosus PRX.AS bottomed out the STOXX
600 in the wake of a Chinese probe into local technology majors,
in one of whom Prosus holds a stake. London markets were shut due to Boxing Day.

(Editing by Alison Williams and Jonathan Oatis)

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.