Oil stocks power Europe’s STOXX 600 to record highs

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(Businesshala) – European shares hit another record peak on Monday, as Royal Dutch Shell pushed energy stocks higher after saying it would end its dual-share system, while some upbeat Chinese data also influenced the perception.

The German stock price index DAX graph is pictured on the stock exchange in Frankfurt, Germany on November 11, 2021. REUTERS/Employees

The continent-wide STOXX 600 index rose 0.1% to an all-time high, though a 1.1% drop in miners limited gains as metal prices fell on China’s pledge to “step down” coal at the COP26 summit Went. [MET/L]

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Data earlier in the day showed retail sales and industrial output growth in the world’s second-largest economy beat expectations last month, fueling global investor optimism. [MKTS/GLOB]

The STOXX 600 has hit a series of record highs this month as strong corporate earnings and central bank policy decisions have boosted investor confidence, helping the sector focus on a post-COVID-19 resurgence.

“The peak we are seeing is driven by expected spending ahead of the Christmas festivities, with continued improvement in business operations likely to boost prospects for European markets,” said Kunal Sawhney, CEO of Culcaine Group.

“Any major disruption of business activity, frequent closures, store closures and operational difficulties due to COVID-19 could potentially bring back the months-long rally in the indices.”

The Austrian government on Sunday became the first European country to reinstate a new lockdown, which has placed millions of people under restrictions amid record level infection rates.

France’s blue-chip CAC 40 reached a record high, rising 2.1% on lift from Airbus. The European planmaker received a multi-billion dollar order for 255 single-aisle A321neo passenger jets from private-equity firm Indigo Partners’ portfolio airlines.

Royal Dutch Shell added 2% saying it would simplify its business and move its head office from the Netherlands to Britain. The stock was the best performer among oil stocks, rising 0.4%.

Meanwhile, Spanish bank BBVA was the biggest pressure on Spain’s blue-chip IBEX, which declined 3.7% on its offer to buy the rest of the guaranteed BBVA for up to 2.25 billion euros ($2.6 billion).

Shares of Philips, which is recalling ventilators because of its use of parts containing potentially dangerous foam, fell 10.9% after the company announced it was in talks with US regulators following a new inspection of one of its facilities. Had been.

Reporting by Anisha Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips and Aditya Sonik

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