European stocks advanced Monday, extending recent gains as vaccines are being lifted, restrictions are lifted and stimulus works its way through the global economy.
After its strongest week since mid-November, the Stoxx Europe 600 SXXP,
trade 0.5% higher. The European benchmark is up nearly 7% this year, outperforming the key benchmarks in the US SPX,
and Asia MS302000,
US stock futures ES00,
NQ00,
they were mixed and the yield on the 10-year US Treasury Department TMUBMUSD10Y,
was 1.62%.
Goldman Sachs strategists say European stock value has outperformed 15% growth since October, and they say the accumulation of value over growth may continue with another 19%.
“Prospects for reopening economies in 2021 have led to an improvement in macro growth prospects following the positive news on vaccines near the end of last year. The economic impact of second-round locks has also been milder [Stoxx 600] companies beat earnings per share in Q4. In the U.S., the passage of the nearly $ 1.9 trillion American Rescue Plan Act will provide further impetus to global recovery, ”said strategists led by Sharon Bell.
The Fed is meeting Wednesday with a challenging legacy of messages, as the central bank needs to explain at the same time why the economy is getting better but wants to be patient in removing stimulus.
Of stocks moved, Danone BN,
4% gathered as yogurt maker board Chairman and CEO Emmanuel Faber and said he is looking for a new permanent boss. Gilles Schnepp, chairman and chief executive of industry group Legrand, has become chairman of Danone.
Flutter Entertainment FLTR,
FLTR,
shares rose 6% because they said they are considering the original U.S. public offering of a “small share” of the sports and daily fantasy site FanDuel. FanKuel DKNG competitive DraftKings,
has increased by 508% over the last 12 months.
H&M HM.B,
Shares rose 2% as the clothing retailer said sales in the first two weeks of March jumped 10% as stores opened in its largest market, Germany.