Europe midday: Shares shrug off Asia worries to extend gains
European stocks extended gains at midday on Monday, shrugging off a weaker overnight performance in Asia.
The pan-European Stoxx 600 index was up 0.74% with all regional bourses higher. Asian shares slipped on news of fresh regulatory crackdown on Chinese firms.
Russ Mould, investment director at AJ Bell, said the Chinese crackdown on the tech sector showed little sign of ending.
"It’s hard to read the end-game as the regulatory pressure on Chinese firms continues to mount and this uncertainty is proving extremely damaging to the valuation of the likes of Alibaba and Tencent," he said.
"Further setbacks could see sentiment towards this part of the market turn decidedly toxic."
Investors were also eyeing US consumer prices data on Tuesday after soaring producer prices on Friday raised cast doubts on the US Federal Reserve’s view that inflation is transitory.
Meanwhile, a September market sentiment survey published by Deutsche Bank showed a consensus view that an equity market correction of 5%-10% by the end of the year was likely.
In equity news, German online pet supplies’ retailer Zooplus jumped after Hellman & Friedman raised its takeover offer to £3.29bn from an initial offer of £3bn.
Shares in S4 Capital slumped 7.6% after the UK digital-advertising and marketing-services company reported wider pre-tax losses for the first half of 2021, but lifted full-year guidance.
Associated British Foods slipped as quarterly sales at Primark were lower than expected, but the company raised its full-year profit outlook.
Inmobiliaria Colonial shares rose as Morgan Stanley reinstated coverage of the Spanish real estate firm and set a price target price at 9 euros per share.
Valneva plunged by a third after the British government ended a Covid-19 vaccine supply deal with the French company, alleging a breach of obligations that Valneva denies.