Europe open: Shares recover from US sell-off, ignore UK Brexit worries
European shares bounced back from last week’s US tech-stock sell-off as investors shrugged off threats the UK would walk away from Brexit trade talks without a deal.
The pan-European Stoxx 600 index rose 1% in morning trade as all major markets on the Continent made strong gains. Stock markets in the US remained closed for the Labor Day holiday, although index futures were trading.
“It is possible that dealers in Europe feel comfortable about buying back into equities because they know their US counterparts are on holiday today,” said CMC Markets analyst David Madden.
“The mood on this side of the Atlantic is surprisingly upbeat given the rise in uncertainty surrounding the UK-EU trade talks, as the British are willing to walk away from the table from mid-October if a free trade agreement hasn’t been agreed upon.
The pound fell after reports the UK was working on legislation to override parts of the Brexit withdrawal agreement.
In corporate news, shares in veterinary drugs maker Dechra led the risers after full-year profits beat expectations and the company increased its dividend.
Payment processing company Network International was also in the green as the company said it expected to benefit from a cut in card transaction fees in the United Arab Emirates.