Europe midday: Shares hit record highs as Avast surges
European shares hit fresh records at midday on Monday, despite worries over new Covid lockdowns in Austria.
The pan-European Stoxx 600 index was up 0.09%, and set a new record high of 487.48 points.
Miners were dragged lower on weaker iron ore and metal prices with Glencore, Rio Tinto and Anglo American all down as a result.
Investors will be eyeing retail sales figures in the US, China and UK this week as the third quarter earnings season begins to wind down.
"The market recovery has well and truly stalled in Europe while Asia is still struggling to get much uplift and the US is failing to build on record highs. In many ways, I'm encouraged by the resilience we're seeing in the markets which are again factoring in higher inflation and earlier rate hikes. But then I wonder what will be the catalyst for the rally to continue," said Oanda analyst Craig Erlam.
"There's a long list of reasons to be concerned right now but with earnings season basically in the rearview mirror, the bullish list is looking a little light. Of course, Covid restrictions this winter could be relatively light touch as vaccinations keep hospitalisations and fatalities low which would be a big plus for companies and economies, and support equity markets. But that will only become clear over time."
Elsewhere, Austria became the first European country to reinstate a fresh lockdown, placing millions of unvaccinated people under restrictions amid record-level infection rates.
In equity news, shares in Philips, which is recalling ventilators due to use of parts containing a potentially hazardous foam, plunged by more than 10.5% after the medical equipment maker announced it was in discussions with US regulators following a new inspection of one of its facilities.
Avast surged after NortonLifeLock satisfied the US antitrust condition for its £6.2bn acquisition of the London-listed cybersecurity firm.
Airbus climbed after it won a multi-billion-dollar order for 255 single-aisle A321neo passenger jets from private-equity firm Indigo Partners’ portfolio airlines and a separate order by Wizz Air for 102 of the aircraft.
Royal Dutch Shell gained after saying it would simplify its business and move its head office to the UK from the Netherlands.
Spanish Bank BBVA fell on its offer to buy the rest of Garanti BBVA for up to €2.25bn.