European stocks climb on easing China curbs

European equities rose to the highest level in a month after China relaxed some of the strictest virus controls of the pandemic, fuelling risk-on sentiment for economic recovery.

A reopening of China’s economy would ease supply bottlenecks and cool commodity prices, according to Ulrich Urbahn, head of multi-asset strategy and research at Berenberg.

The US markets were closed for Memorial Day.

Dublin

The Irish index of shares rose just over 1 per cent to end at 7,424, lifted by banking and building stocks.

Bank of Ireland added 1.4 per cent to its stock over the day, with AIB gaining 0.8 per cent. Permanent TSB ended the day up more than 2 per cent.

Among building stocks, CRH was up marginally, adding almost half a per cent to its shares, while insulation specialist Kingspan saw its stock roar ahead, gaining more than 3 per cent by the end of the session. Property investment company IRES Reit gained 3 per cent to close at €1.44, while Cairn Homes and Glenveagh added 1.3 per cent and almost 2 per cent respectively.

In travel stocks, Ryanair saw its shares rise just over half a per cent to €14.82 by the end of the day, while hotel group Dalata closed at €4.42, almost 2.7 per cent higher.

London

Britain’s FTSE 100 edged higher on Monday, while Countryside soared after its shareholder made a second approach to buy the homebuilder.

After rising to its highest level since April 22nd, the blue-chip FTSE 100 gave away some gains to end 0.2 per cent higher, while the domestically focused FTSE 250 rose 0.8 per cent.

Gains were broad-based in UK stocks, with spirits maker Diageo, consumer giant Unilever, and miner Anglo American providing the biggest boost to the FTSE 100.

Countryside Partnerships surged 18.6 per cent after Inclusive Capital, which owns about 9.2 per cent of Countryside, said was looking to engage with the homebuilder for a possible takeover offer valuing it at about £1.47 billion (€1.64 billion).

Ted Baker rose 4.6 per cent after a report said that Juicy Couture owner Authentic Brands is the British fashion chain’s preferred bidder and that the two firms could agree on a £300 million (€352 million) deal.

Martin Sorrell’s digital advertising group S4 Capital gained 4.3 per cent as it reiterated its full-year outlook, saying it expected robust demand despite forecasts of slowing global economic growth.

Europe

The Stoxx 600 advanced 0.6 per cent by the close, rising for a fourth day in the longest winning streak since March. Consumer and technology sectors were among the biggest gainers, while telecoms and utilities lagged.

Spanish inflation unexpectedly quickened in May, denting hopes that the euro zone’s record price surge is peaking and piling more pressure on the European Central Bank to act. The ECB debate over how aggressively to tighten monetary policy is likely to intensify this week among officials, whose window to speak out before the June 9th decision will close on Thursday.

Among individual movers, Telecom Italia jumped to the highest in more than a month after reaching a preliminary deal with state-backed lender Cassa Depositi e Prestiti for a national single-network project. Sanofi slipped after its plans to make its erectile dysfunction drug Cialis available without prescription in the US were put on hold Monday. Meanwhile, Cellnex Telecom shares fell as the Spanish group is exploring a bid for Deutsche Telekom AG’s towers unit.

Shares in Pandora climbed almost 10 per cent, while Delivery Hero gained 9.7 per cent. British American Tobacco fell 2.7 per cent, while Cellnex Telecom was down 2.3 per cent.

- Additional reporting: Bloomberg, Reuters.