{"id":108291,"date":"2021-03-01T13:58:02","date_gmt":"2021-03-01T13:58:02","guid":{"rendered":"https:\/\/fin2me.com\/?p=108291"},"modified":"2021-03-01T13:58:02","modified_gmt":"2021-03-01T13:58:02","slug":"european-stocks-rebound-as-bond-markets-stabilise-uk-outperforms","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/european-stocks-rebound-as-bond-markets-stabilise-uk-outperforms\/","title":{"rendered":"European stocks rebound as bond markets stabilise, UK outperforms"},"content":{"rendered":"
(Reuters) – European stocks recovered on Monday after bond markets stabilized following a sharp selloff last week, while sentiment was boosted by heightened optimism over global COVID-19 vaccination programmes and a $1.9 trillion U.S. stimulus package.<\/p> The pan-regional STOXX 600 index rose 1.7%, tracking strong gains in Asian markets, while data showed manufacturing activity picked up pace in major euro zone economies in February.<\/p>\n The European equities benchmark fell to a near one-month low on Friday as investors grew fearful that rising inflation due to another large U.S. stimulus package and the re-opening of the global economy could drive major central banks to tighten monetary policy.<\/p>\n However, a climb in government bond yields reversed on Monday, driving a recovery in global equities.<\/p>\n \u201cEquities should prove resilient, but the recent pick-up in real yields deserves to be watched. It is more toxic for highly valued risk assets, including growth stocks,\u201d analysts at Generali Investments wrote in a note.<\/p>\n Overall, the analysts said they maintain \u201ca moderate pro-risk tilt\u201d, with potential pullback in stocks providing buying opportunities as economies look to re-open. News that initial deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start in the United States on Tuesday also helped the mood.<\/p>\n The German DAX rose 1.3%, while France\u2019s CAC 40 was up 1.6% and UK\u2019s FTSE 100 gained 1.9%.<\/p>\n London markets outperformed as data showed more than 20 million people across the United Kingdom received their first COVID-19 vaccine shot as the country made more progress with Europe\u2019s fastest vaccination programme.<\/p>\n Meanwhile, British finance minister Rishi Sunak is expected to announce more borrowing on top of his almost 300 billion pounds ($418 billion) of COVID-19 spending and tax cuts in a budget statement on Wednesday.<\/p>\n Homebuilders such as Persimmon, Taylor Wimpey and Barratt Developments were the top gainers on the FTSE 100, gaining almost 5%.<\/p>\n British Airways-owner IAG also jumped 5% after Peel Hunt upgraded the stock to \u201cbuy\u201d on expectations of a rebound in travel demand during summer.<\/p>\n Miners, travel and leisure and retail sectors topped gains in Europe, up more than 2.3%.<\/p>\n French food group Danone rose 2.5% after it said it was taking a first step toward selling its stake in its Chinese dairy partner Mengniu Dairy, and would use the gains to buy back its own shares.<\/p>\n Swiss-listed shares of computer goods maker Logitech International rose 1.5% after it raised its sales growth forecast to about 63% for fiscal 2021, up from the 57-60% range it previously expected.<\/p>\n