European Stocks Rally on Solid China Data
European stocks rose on Monday, buoyed by strong economic data from China and the European Central Bank’s (ECB) recent stimulus package. The Stoxx Europe 600 Index gained 0.7%, while the Euro Stoxx 50 Index rose 0.9%.
China’s Economy Grows
China’s economy grew 4.9% in the third quarter, compared to the same period last year. This was the first time the economy had grown since the start of the pandemic. The data was better than expected, and it helped to boost investor sentiment in Europe.
ECB Stimulus Package
The ECB recently announced a €1.35 trillion stimulus package to help the European economy recover from the pandemic. The package includes a €750 billion bond-buying program and a €500 billion loan program. The ECB also cut interest rates to a record low of 0.0%.
Gains Across Sectors
The rally was broad-based, with gains seen across all sectors. Banks were among the biggest gainers, with the Stoxx Europe 600 Banks Index rising 1.3%. Technology stocks also rose, with the Stoxx Europe 600 Technology Index gaining 0.9%.
European Markets React Positively
European markets reacted positively to the news from China and the ECB. The German DAX Index rose 0.9%, while the French CAC 40 Index gained 0.8%. The UK’s FTSE 100 Index rose 0.7%.
Gains in Asia
Asian markets also rose on Monday, with the Shanghai Composite Index gaining 0.7%. The Hang Seng Index in Hong Kong rose 0.8%, while the Nikkei 225 Index in Japan rose 0.6%.
Oil Prices Rise
Oil prices rose on Monday, with Brent crude futures rising 0.7% to $42.60 a barrel. The gains were driven by the positive economic data from China and the ECB’s stimulus package.
European Currencies Strengthen
European currencies strengthened on Monday, with the euro rising 0.3% against the US dollar. The British pound also rose 0.3%, while the Swiss franc gained 0.2%.
Outlook
The positive economic data from China and the ECB’s stimulus package have helped to boost investor sentiment in Europe. The rally in European stocks is likely to continue in the near term, as investors remain optimistic about the economic recovery.