European open: Recovery hopes, Nikkei surge boost stocks
European shares started the week in bullish mood as economic recovery hopes and a surge in Japan's Nikkei index fuelled investor sentiment.
The pan-European Stoxx 600 rose 0.64% with all major regional bourses higher. Higher oil and copper prices were also a key driver. Trading volumes were expected to be thin with markets in China, Hong Kong and the US shut for local holidays.
"Tailwinds are in abundance, with a significant stimulus package looking increasingly likely, a strong earnings reporting season and an accelerated vaccine rollout programme each stoking generally positive sentiment. In the year to date, the Dow Jones is now ahead by 2.8%, the S&P500 4.8% and the Nasdaq 9.4%, said interactive investor analyst Richard Hunter.
"US markets will be closed for Presidents Day (as are the Chinese and Hong Kong markets for the Lunar New Year holiday), leaving other geographies and asset classes to take up the reins."
"Hopes of increased demand in the coming months along with controlled supply has been positive for an oil price which has risen by 22% in the year to date, and which has seen a further small spike following some concerns around fresh tensions in the Middle East."
Japanese shares shone, with the benchmark Nikkei index breaching 30,000 for the first time in three decades.
In equity news, Bollore surged 12% to the top of the STOXX 600 as French media giant Vivendi said it planned to distribute 60% of Universal Music’s capital to investors and aimed to list its most-prized asset by the end of the year. Vivendi stock soared by 17%.