Europe open: Shares hit new highs despite possible UK lockdown extension
European shares hit records again on Monday despite reports the UK was due to delay lifting its Covid lockdown.
The pan-European STOXX 600 was up 0.33%. The UK’s FTSE 100 was up 0.41% and hit a fresh post-pandemic high even as the government was due to announce later in the day that the lifting of lockdown - originally due to end on 21 June - will be pushed back by up to a month.
"In the UK, the likelihood of an extension to the current lockdown restrictions is something which the market is expecting,” said Richard Hunter, head of markets at Interactive Investor.
"Hospitality and travel stocks in particular have seen another downward lurch, with the additional complication of certain of the government assistance schemes also nearing an end. There is therefore likely to be something of a compromise along the way, as the government is likely to play the cautious health card ahead of completely letting the economy loose.”
In equity news, shares in oil giant Shell rose on a report it was considering the sale of its Texas shale assets.
Travel and leisure stocks were lower on the delay to the UK lockdown lifting, with British Airways parent IAG, engine maker Rolls-Royce, InterContinental Hotels, Premier Inn owner Whitbread, budget airlines easyJet and Wizz Air, all lower.
Dutch medical equipment company Philips fell 4.12% to the bottom of the Stoxx as it said it would recall some “CPAP” breathing devices and ventilators globally because of a foam part that might degrade and become toxic.