European stocks continue to rise into month’s end

Published On: May 31, 2022Categories: Stocks & Shares1.4 min read

The pan-European Stoxx 600 was up 0.59% to 446.57, Germany’s Dax put on another 0.79% to 14,575.98 and the CAC-40 added 0.72% to 6,562.39

European stocks continued pushing higher near the end of May on the back of news that covid restrictions in Shanghai would be lifted two days later and a potential £1.47bn ($1.86bn) bid for UK house builder Countryside Partnerships.

In the background, European Union leaders were expected to announce plans for a partial embargo on Russian oil exports.

The pan-European Stoxx 600 was up 0.59% to 446.57, Germany’s Dax put on another 0.79% to 14,575.98 and the CAC-40 added 0.72% to 6,562.39.

Front-dated Brent was higher alongside, rising by 2.3% to $121.72 a barrel.

Euro/dollar also advanced reaching 1.078 on the back of data showing another sharp rise in German consumer prices.

According to a preliminary estimate from the Federal Office of Statistics, Germany’s Consumer Price Index was up by 0.9% month-on-month in May, pushing the annual rate of inflation from 7.4% in the month before to 7.9% vs. a consensus of 7.6%.

Markets in the US were closed Monday for the Memorial Day holiday, after the S&P 500 and the Dow Jones Industrial Average on Friday snapped losing streaks to post their strongest week since November 2020.

Asia-Pacific rose sharply as sentiment was boosted by a relaxation of covid controls over the weekend in the major Chinese cities of Beijing and Shanghai.

Signs that China was becoming a little more tolerant to covid infection rates helped lift the share prices of luxury goods companies, said Hargreaves Lansdown analyst Susannah Streeter.

The covid case load in China has been a source of weakness for companies selling high end products given that the market is still considered to be the growth engine of the sector, but now there are high hopes big spenders will be flocking back to boutiques to get their hands on coveted brands, Streeter said.

About the Author: Jonathan Adams

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