European stocks rose sharply on Monday in early European trade as global markets rally. The Stoxx 600 rose 1.5%, with travel and leisure stocks adding 2.4% to lead gains, and all other sectors were lifted by the passage of stimulus package by the House and now heading to the Senate, positive news of Covid-19 vaccine rollout, and falling U.S. Treasury yields.
Sentiment has become optimistic in equity markets globally. Yields on the benchmark U.S. 10-year notes traded last at 1.40%, below last week's peak of 1.61%, while yields on European government bonds have also retreated from Friday’s highs. As a result, Germany’s DAX traded 0.8% higher, France CAC 40 climbed 0.7% and the FTSE 100 rose 0.5%.
Investors are now eyeing on today’s release of manufacturing PMI data, which will provide details as to how this sector is holding up as most of European countries are still in lockdown restrictions.
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