PARIS / LONDON (dpa-AFX) – A good mood on China’s stock exchanges has also given investors on the European stock markets a positive mood on Monday. According to analyst Konstantin Oldenburger from broker CMC Markets, low interest rates and the tempting calls from the Beijing government drove Chinese savers into stocks.
The leading Eurozone index EuroStoxx 50 (EURO STOXX 50) rose to its highest level in four weeks in the course of trading and closed with a gain of 1.69 percent at 3350.03 points. In Paris, the French leading index CAC 40 advanced by 1.49 percent to 5081.51 points. In London, the FTSE 100 rose even more strongly by 2.09 percent to 6285.94 points.
A report in a financial newspaper sparked the recent price rally on the mainland stock exchanges in China. The report highlighted reforms of the Chinese stock market and high liquidity as positive for stocks. The leading index CSI 300 then rose by almost six percent to its highest level in five years.
As is so often the case in strong market phases, investors rely on riskier industries. Accordingly, the banking and automotive sector indices were the biggest winners in Europe with 3.9 and 2.6 percent respectively. The utilities sector posted the lowest premium at 0.2 percent.
In Zurich, Clariant’s paper fell by 12.6 percent. The head of Clariant’s major shareholder Sabic International, Yousef Al-Benyan, does not want to know about a merger of the chemical company, which could reduce Sabic’s stake. In the past week, speculation that Clariant could partner with a partner had catapulted the stock price upwards.
In London, the price of online fashion retailer Boohoo slumped by more than 23 percent. The trigger was a report by the “Sunday Times” about allegedly miserable working conditions at a supplier to the company. Boohoo announced that it would investigate the allegations. Analyst Wayne Brown from broker Liberum canceled the buy recommendation for the shares./edh/men
