European Shares Rise in Meager Transactions

European stocks rose in meager trading on Monday, amid optimism about the resumption of economic activities in a number of countries and indications of further stimulus to the ailing euro area economy.

The euro zone index rose 0.8 percent in early trading, the European Stoxx 600 index rose 0.6 percent, and the German DAX rose 0.9 percent.

Trading volumes were generally weak due to market holidays in the United States, Britain and several Asian countries.

Bayer German shares jumped 4.3 percent after it announced progress in reaching compensation claims for the cause of the weed killer produced by “Round Up” in cancer.

Shares of Lagarde Capital and Management rose 7.5 percent after Bernard Arnault, the billionaire shareholder of luxury fashion group LVHM, agreed to buy a stake in the company.

Since its corona crisis low of mid-March, the Dax has already increased by 37 percent. This Monday, however, the impulses from New York and London are missing, due to public holidays there is no trading at the start of the week.

The business climate surveyed by the Ifo Institute rose by 5.3 points to 79.5 points in May, slightly more than analysts had expected.

The MDax of medium-sized German stocks recently advanced by 1.55 percent to 24,970.71 points. For the EuroStoxx 50 as the leading index of the euro zone, it was 1.7 percent high.

The markets were also unimpressed by the recent development in Hong Kong, where China wants to intervene more than ever in its autonomous special administrative region with security laws. For the first time since the start of the corona pandemic, there were demonstrations in Hong Kong again. At the same time, China warned the US of a “new Cold War”.

Bayer won eight and a half percent at the top of the Dax. In the billion dollar glyphosate dispute in the United States, the pharmaceutical and agrochemical company is apparently heading towards the end of a large chapter. According to a report by the Bloomberg news agency, the Leverkusen company has now been able to reach at least one verbal agreement in 50,000 to 85,000 of the estimated 125,000 lawsuits. Bloomberg referred to people involved in the negotiations.

Lufthansa papers rose by six and a half percent. According to information from the German press agency, the federal government and Lufthansa management have fundamentally agreed on billions in government aid for the battered airline. However, the steering committee of the state economic stabilization fund, the bodies of Lufthansa and the EU Commission still have to agree. The agreement was “within the framework” of the rescue plan provided by the federal government, government officials said on Monday. According to this, the volume of aid amounts to nine billion euros.

Other papers from the aviation sector, which was badly hit by the corona pandemic, also grew strongly: At MTU, Fraport and Airbus, bottoming took shape with premiums of between four and more than seven percent.

The focus was also on Volkswagen. Just over four and a half years after the diesel scandal was exposed, the Federal Court of Justice (BGH) announced the first judge’s decision on Monday. According to this, complaining buyers can return their car and claim the money for it. However, you must have the kilometers driven credited to the purchase price. The Volkswagen benefits listed in the Dax were slightly down.

The rise in oil prices could be the start of a stabilization of the oil market, but only under certain conditions.

The reduction in supply concluded by OPEC + countries to the tune of nearly 10 million barrels (Saudi Arabia making an additional reduction to the tune of 1 million barrels) and the global economic recovery have helped crude oil prices recover somewhat. In such a context, the monitoring of the economic calendar is essential and in particular that of the weekly variation of crude oil stocks in the United States.

The drop in weekly crude oil stocks in the United States confirms the recovery in demand for oil in the United States following the deconfinement measures. In addition, the unprecedented downturn in crude stocks at Cushing takes us far away from the possibility of a negative change for WTI oil prices.

More recently, encouraging news about promising tests to find a Covid-19 vaccine has boosted market sentiment while boosting oil prices, allowing WTI to snap an additional 1% to around 32 dollars a barrel.

Reviewer overview

European Shares Rise in Meager Transactions, Bayer Jumps - /10

Summary

European stocks rose in meager trading on Monday, amid optimism about the resumption of economic activities in a number of countries and indications of further stimulus to the ailing euro area economy.

0 Bad!