European Stocks Rise on China Optimism
European stocks rose on Monday as investors were optimistic about the prospects of a recovery in China’s economy. The Stoxx Europe 600 Index gained 0.7%, while the German DAX 30 Index rose 1.2%.
China’s Economy
China’s economy has been hit hard by the coronavirus pandemic, with the country’s gross domestic product (GDP) contracting 6.8% in the first quarter of 2020. However, recent data has shown that the economy is beginning to recover, with industrial production rising 4.4% in June from a year earlier.
The Chinese government has also taken steps to stimulate the economy, including cutting interest rates and increasing fiscal spending. These measures have helped to boost investor sentiment, with many expecting the economy to continue to recover in the coming months.
European Markets
The optimism surrounding China’s economy has helped to lift European markets. The Stoxx Europe 600 Index is up more than 8% since the start of the year, while the German DAX 30 Index has gained more than 10%.
The gains have been driven by a number of factors, including the easing of coronavirus restrictions in many countries, as well as the European Central Bank’s (ECB) decision to keep interest rates at record lows.
Daimler Truck Gains
Shares of Daimler AG, the German automaker, rose 4.2% on Monday after the company announced that it had signed a deal with China’s FAW Group to produce electric trucks. The deal is part of Daimler’s plan to expand its presence in the Chinese market.
The company is also planning to launch a new electric truck in Europe later this year. The truck, which is expected to be priced at around €50,000 ($58,000), is expected to be a hit with customers due to its low emissions and fuel efficiency.
Other Gains
Other stocks that rose on Monday included French luxury goods maker LVMH, which gained 2.2%, and British bank Barclays, which rose 1.7%.
Outlook
The outlook for European markets remains positive, with investors expecting the economy to continue to recover in the coming months. The ECB is expected to keep interest rates at record lows, while the Chinese economy is expected to continue to improve.
The gains in European markets are also being driven by the easing of coronavirus restrictions in many countries, as well as the continued rollout of vaccines.
Overall, the outlook for European markets remains positive, with investors expecting the economy to continue to recover in the coming months. The ECB is expected to keep interest rates at record lows, while the Chinese economy is expected to continue to improve. The gains in European markets are also being driven by the easing of coronavirus restrictions in many countries, as well as the continued rollout of vaccines.