Europe open: Shares higher on Trump health, US stimulus hopes

European shares started the week in firmer territory on hopes a US stimulus deal could be reached and reports that President Donald Trump may be discharged from hospital soon having contracted the coronavirus.

The pan-European Stoxx 600 index rose 0.63% with all major bourses higher.

A return from Trump, who tested positive last week and was taken to hospital, would eliminate fears of a potential delay in the presidential election next month.

Investors were also looking for positive news on the second stimulus package. Last week, Nancy Pelosi, the House Speaker, asked airlines not to furlough their employees as more support is imminent.

“We saw some serious gains for US airlines such as American Airlines and United. The US airline sector is likely to remain highly volatile this week, and if the second stimulus aid package becomes a reality, we will not only see the airline stocks skyrocketing, but the US stock market will also rise,” said Avatrade chief market analyst Naeem Aslam.

In corporate news, shares in Cineworld plunged 36% as the company confirmed it would temporarily suspend operations at all of its UK and US theatres from Thursday due to the Covid-19 pandemic.

The company cited an “increasingly challenging theatrical landscape and sustained key market closures” adding that the move would hit 536 Regal theatres in the US and 127 Cineworld and Picturehouse theatres in the UK.

Oilfield equipment and services outfit, Weir Group topped the risers after selling its oil & gas unit to US-based Caterpillar £314m. The company said that the transaction continued its transformation into a premium mining technology 'pure play' with the new funds enhancing its flexibility to invest in future growth opportunities.

German fertiliser group K+S jumped 14.3% as Bloomberg reported it was in advanced talks to sell its Morton Salt unit to Kissner Group for about $3bn.

Dufry surged 12.2% after it revealed that China's Alibaba planned to acquire a stake of up to 9.99% in the Swiss duty free group.

Shares in Suez fell as Veolia said on Sunday that it would not launch a hostile after buying Engie SA's stake in the water-and-waste management company, and Suez's board would have to agree to any public takeover bid.