Oil Inventories Bring STOXX 600 to Record Highs | Money
BRUSSELS, November 15 – European stocks hit a new high TODAY as Royal Dutch Shell led energy stocks higher after announcing it would end its double-action scheme, while some bullish Chinese data also boosted sentiment.
The continent-wide STOXX 600 Index rose 0.1% to an all-time high, although a 1.1% drop in miners capped gains as metals prices fell following a China’s commitment to “gradually reduce” coal at the COP26 summit.
Data earlier today showed retail sales and industrial production growth last month in the world’s second-largest economy exceeded expectations, fueling optimism among global investors.
The STOXX 600 hit a series of records this month as corporate earnings and accommodative central bank policy decisions boosted investor confidence, helping to distract from a resurgence of Covid-19 in the region.
“The spikes we are seeing are due to the spending spree expected ahead of the Christmas festivities, with continued improvement in business operations likely to boost the outlook for European markets,” said Kunal Sawhney, CEO of Kalkine Group.
“Any major hindrance to business activity on the backs of Covid-19, repeated closings, store closings and operational difficulties will potentially trace the surge in evidence that has lasted for months.”
Austria’s government on Sunday became the first European country to reinstate a new lockdown, placing millions of unvaccinated people on restrictions amid record infection rates.
The French CAC 40 reached a record level, up 2.1% thanks to an Airbus lift. The European aircraft maker has received a multibillion-dollar order for 255 A321neo single-aisle jets from airlines in the portfolio of private equity firm Indigo Partners.
Royal Dutch Shell added 2% after saying it would simplify its operations and move its headquarters to Britain from the Netherlands. The stock was the best performing among oil stocks, advancing 0.4%.
Meanwhile, Spanish bank BBVA has been the main drag on Spain’s blue chip IBEX, losing 3.7% on its offer to buy the remainder of Garanti BBVA for up to € 2.25 billion. (RM10.8 billion).
Shares of Philips, which is recalling fans because of the use of parts containing potentially dangerous foam, fell 10.9% after the company announced it was in talks with US regulators over the ” a new inspection of one of its facilities. – Reuters