Stocks in Europe surge as focus returns to reopening economies

Stocks in Europe surge as focus returns to reopening economies

European stocks rose on Monday as a lack of escalation in U.S.-China tensions put the focus back on reopening of the world’s economies.

The U.K. FTSE 100 UKX, 1.00% climbed 1% and the France CAC 40 PX1, 1.92% jumped 1.2%.

Gainers included Associated British Foods ABF, 0.61%, which said most of its Primark clothing stores will be reopened this month, shopping center owner Unibail-Rodamco-Westfield URW, 11.42% and oil-services firm John Wood Group WG, -0.19%.

A number of countries, including Germany and Switzerland, were closed for the Ascension Day holiday.

It was the first opportunity for traders in Europe to react to President Donald Trump’s Friday news conference on China, in which he took no new steps to punish the world’s second-largest economy over its new national security law for Hong Kong.

The de-escalation helped stocks resume their upward path as economies reopen that has pushed the Stoxx Europe 600 SXXP, 1.46% up over 9% over the last two months.

People gather in Trafalgar Square in central London on Sunday, May 31, 2020, to protest against the recent killing of George Floyd by police officers in Minneapolis that has led to protests across the U.S. Associated Press

In the U.K., outdoor gatherings of six people were legally permitted as car dealerships reopened.

The euro EURUSD, 0.29% hit the highest level since the middle of March on hopes for the European Union’s €750 billion rescue fund.

Futures on the Dow Jones Industrial Average YM00, 0.56% slipped after Bloomberg News reported that China told state-run companies to pause purchases of U.S. soybeans and pork products.

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