European Stocks Close Higher As Recovery Hopes Outweigh Virus Concerns

(RTTNews) - European stocks closed higher on Monday as rising optimism about economic rebound on the back of data showing stronger than expected growth of eurozone private sector helped offset concerns about the spread of the delta variant of the coronavirus.

The pan European Stoxx 600 ended up by 0.39%. The U.K.'s FTSE 100 climbed 0.58%, Germany's DAX edged up 0.08% and France's CAC 40 gained 0.22%, while Switzerland's SMI crept up 0.02%.

Among other markets in Europe, Austria, Czech Republic, Finland, Iceland, Ireland, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey closed on firm note.

Belgium, Denmark and Netherlands edged up marginally, while Greece ended weak.

In the UK market, IAG gained nearly 5%. Entain, Baclays Group and Tesco moved up 3 to 3.3%, while Rolls-Royce Holdings, Sainsbury (J), Natwest Group, St. James Place, Aviva, Lloyds Banking Group, Legal & Generale, Antofagasta, 3i Group, Flutter Entertainment, Kingfisher and Schrodders gained 1.5 to 2.5%.

Morrison Supermarkets shares soared 11% after the company reached agreement to be acquired by Fortress Investment Group (UK) Ltd. for 254 pence per share in cash and dividend.

Aveva Group, AstraZeneca, Polymetal International, Informa and Just Eat Takeaway.Com shares ended notably lower.

In the French market, BNP Paribas, Air France-KLM, Credit Agricole, Accor, Legrand, Societe Generale and STMicroElectronics gained 1 to 2.3%.

In Germany, Lufthansa rallied more than 3.5%. HeidelbergCement, Deutsche Bank and Thyssenkrupp gained about 1.25% each.

Fresenius Medical Care, Fresenius, BMW, Volkswagen, Daimler, Adidas and SAP ended weak.

The World Health Organization (WHO) director general Tedros Adhanom Ghebreyesus warned on Saturday the world is currently in a very dangerous period of the pandemic and the delta variant is continuing to evolve and mutate.

A survey showing business activity in the euro zone hit a 15-year high in June lifted sentiment. Final data from IHS Markit showed the euro area composite output index rose to 59.5 in June from 57.1 in May. The reading was also above the flash 59.2.

June marked not only the fourth successive month that the index has posted above the 50.0 no-change mark, but the highest index level since June 2006.

The services Purchasing Managers' Index logged 58.3 in June, up from 55.2 in the previous month and the flash 58.0. The latest reading was also the highest since July 2007.

Eurozone's investor confidence improved for a fifth month in a row in July to its highest level in nearly three-and-a-half years amid the rebound in economic activity as economies re-open after restrictions linked to the coronavirus pandemic were relaxed.

The eurozone investor confidence index rose to 29.8 from 28.1 in June, survey data from the think tank Sentix showed Monday. Economists had forecast a score of 30.2.

The Germany's composite output index rose to a decade-high of 60.1 in June from May's 56.2. The services PMI rose sharply to 57.5 in June, the highest since March 2011, from 52.8 in May.

France's composite output index came in at 57.4 in June versus 57.0 in May. At the same time, the services PMI advanced to 57.8 from 56.6 in May and also above the flash 57.4.

The U.K. services sector continues to rebound from the pandemic, but price pressures jumped by the most on record, adding to inflation fears.