Europe open: Danone shares rise after CEO departure

European shares started the week higher driven by hopes of a swift economic recovery and the departure of the head of French food company Danone.

The pan-European Stoxx 600 index rose 0.58% in early trade with all regional bourses higher.

Sentiment was also boosted by a surge in China’s factory and retail sector activity in the first two months of the year, beating expectations, as the economy consolidated its brisk recovery from the coronavirus paralysis of early 2020.

“Investors continue to anticipate speedy economic recoveries as the powerful forces of accelerating vaccine rollouts and significant financial assistance combine,” said Richard Hunter, head of markets at interactive investor.

“The prospects for a strong rebound has also seen the continuation of the rotation theme, with more traditional and cyclical stocks the subject of renewed investor interest, and to some extent at the expense of the previously all-firing growth stocks, and big tech in particular.”

In equity news, shares in Danone jumped 3.85% after the company’s board ousted Emmanuel Faber as its chairman and chief executive due to growing pressure from shareholders.

Flutter Entertainment was up 7.29% as the company confirmed it was mulling a spinoff for its FanDuel unit in the US as it looked to cash in on the growing liberalisation of mobile betting in America.

Shares in carmaker Stellantis gained 3.5% after Deutsche Bank started coverage with a ‘buy’ rating.