European markets closed well

Brussels — Despite weak eurozone economic sentiment data and the ongoing war in the Middle East, European stocks gained some significant ground in positive territory on Monday.

The upmove was supported by some bargain hunting at several counters following recent declines.

As the joint US-Israeli war on Iran stretched into its fifth week, French central bank chief, Francois Villeroy de Galhau, said the European Central Bank, ECB, is ready to act, but it is too early to discuss the timing of any rate hike.

Oil prices climbed up sharply amid concerns about supply disruptions from the Middle East. Brent crude futures climbed to nearly $109.50 a barrel, before easing to around $107.60, but still remained nearly 2.3% up from previous close.

The pan European Stoxx 600 climbed 0.94%. The United Kingdom’s FTSE 100 jumped 1.61%, Germany’s DAX closed up by 1.18% and France’s CAC 40 ended with a gain of 0.92%. Switzerland’s SMI gained 0.78%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended higher. Czech Republic, Greece, Iceland, Ireland and Turkey closed weak.

European markets closed well

In the UK market, Burberry Group, LSEG, Centrica, British Land, Land Securities, SSE, Experian, Relx, BAE Systems, Severn Trent, Admiral Group and BP gained 3-4.5%. Rio Tinto gained about 3.5%. The mining giant said operations at three of its four Pilbara iron ore port terminals have resumed after Tropical Cyclone Narelle passed over Western Australia’s Pilbara region. National Grid, Glencore, AstraZeneca, United Utilities, Haleon, Pearson and AutoTrader Group were among the several other notable gainers. Antofagasta drifted down 3.2%. IAG, Airtel Africa, Lion Finance Group, Reckitt Benckiser and Smiths Group lost 1-2%.

In the German market, RWE, Scout24, Hannover RE, Vonovia, Deutsche Boerse, Rheinmetall, SAP, Munich RE, Symrise, E.ON, Merck, Beiersdorf, Bayer, Brenntag and Fresenius gained 2-3.5%. Allianz, Deutsche Telekom, Qiagen, BASF, Gea Group, Deutsche Post and Adidas also posted strong gains. Siemens Energy and Commerzbank shed about 2.7% and 1.2%, respectively. Continental also ended notably lower.

In the French market, Engie, Teleperformance, TotalEnergies, Thales, Kering, Edenred and Danone gained 3-4%. Stellantis, Unibail Rodamco, AXA, Pernod Ricard, LVMH, Dassault Systemes, Air Liquide, Publicis Group, Carrefour, Veolia Environment, Capgemini, Bureau Veritas, Orange and EssilorLuxottica also closed notably higher. STMicroelectronics, Société Générale, Schneider Electric, Accor, Safran, ArcelorMittal and Airbus ended weak.

In economic news, Germany’s inflation accelerated in March as energy prices increased for the first time since late 2023 due to the Iran war, preliminary data from the Federal Statistical Office showed. The consumer price index rose 2.7% year-on-year in March, faster than February’s 1.9% gain. The rate came in line with expectations.

A report from the European Commission showed the eurozone Economic Sentiment Indicator dropped to 96.6 in March, down from a revised 98.2 in February and missing market forecasts of 96.8. Euro area consumer confidence was confirmed at -16.3 in March, the lowest since October 2023, down from -12.3 in the prior month.

In economic news, net mortgage approvals for house purchases in the UK, which is an indicator of future borrowing, increased to 62,600 in February from 60,200 in January, above market expectations of 61,300.