Europe open: Stoxx jumps as post-US election rally continues
By Frank Prenesti
Date: Monday 11 Nov 2024
(Sharecast News) - European shares opened strongly on Monday as the post-US election rally continued and investors shrugged off a fall on Asian markets in response to China's latest stimulus measures.
The pan-regional Stoxx 600 index was up 1.05% to 512 in early deals with major Continental bourses higher. Germany's DAX powered ahead with a 1.27% rise.
China on Friday unveiled a 10 trillion yuan debt package help local government financing but did not announce any direct stimulus measures into the broader economy. Investors are still fretting about US President-elect Donald Trump initiating a trade war with Beijing.
"There is no sign of risk appetite having been sated after US election week, with the possibility of a new era of growth propelling markets to new record highs," said Interactive Investor head of markets Richard Hunter.
"Expectations are high that the new administration will equate to less regulation, lower taxes and a spending spree which could sprawl across much of the economy, including the consumer who is a vital cog in the economic engine of growth."
"That valuations are becoming stretched and that some of the measures could be inflationary as well as adding to the ballooning deficit are all apparently concerns for further down the line."
In equity news, auto supplier Continental jumped after the company beat quarterly profit expectations.
Burberry rose after a media report stated the UK fashion brand is poised to be taken over by Italian brand Moncler.
Croda shot higher as the specialty chemicals group left full-year constant-currency profit guidance unchanged after a solid third quarter, but said a stronger pound will hit the bottom-line results more than previously expected.
Reporting by Frank Prenesti for Sharecast.com
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