BRUSSELS, Dec 28 — European shares edged up to a five-week high today, taking heart from Wall Street hitting record highs overnight, even as Omicron worries remained with France tightening curbs and Covid-19 cases surging in Spain and Britain.
The pan-European STOXX 600 rose 0.6 per cent, after adding 0.6 per cent in its previous session, to notch a more than one-month high.
Risk appetite remains strong into the year-end, according to analysts, despite the threat of the Omicron coronavirus variant hampering a global economy already tackling slowing growth, supply bottlenecks and soaring prices.
The STOXX 600 is eyeing its second straight session of gains in the final week of 2021 after adding 2.6 per cent in December so far, on track for its best month since August.
“Given rich valuations after an enthused, if not euphoric, bull run in 2021, it is not unreasonable to propose that this Santa Rally is clearing a higher bar,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank.
Defensive stocks including healthcare and industrials led gains, with almost all sectors trading in positive territory.
Healthcare stocks rose 0.8 per cent to their highest in nearly three months, and were eyeing their biggest two-day gain in more than a week. The sector has added 25 per cent this year, outperforming the benchmark’s 22 per cent so far.
Spain’s coronavirus infection rate exceeded 1,000 cases per 100,000 people for the first time on Monday, stoked by the fast-spreading Omicron variant.
While England will not get any new Covid-19 restrictions before the end of 2021, the French government said it would tighten measures, though there will be no curfew for New Year’s Eve. The blue-chip CAC 40 rose 0.6 per cent in early trade.
The rapid rise of Omicron cases could dampen, if not derail, central banks’ plan for policy tightening into the next year, Varathan added.
Shares of Italy’s Alerion Clean Energy advanced 4.4 per cent on reports its controlling family could sell a stake of up to 43 per cent in the renewable energy operator in a deal worth around 800 million euros.
Swiss specialty chemicals maker Clariant said it will purchase assets from German competitor BASF in North America in a $60 million deal that will help grow its sustainable business. BASF and Clariant shares rose 1.0 per cent and 0.6 per cent respectively.
Telecom Italia climbed 0.6 per cent after an Italian ministry said it would use a proposal presented by a consortium that includes the company as a blueprint in the national cloud tender it plans to launch in the first weeks of 2022. — Reuters
Source: Malay Mail
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