Oil Inventories Bring STOXX 600 to Record Highs | WKZO | All Kalamazoo

By Anisha Sircar

(Reuters) – European stocks hit another all-time high on Monday as Royal Dutch Shell led energy stocks higher after announcing it would end its double-share system, while some bullish Chinese data also showed stimulated the feeling.

The continent-wide STOXX 600 Index rose 0.1% to an all-time high, although a 1.1% drop in miners capped gains as metal prices fell on China’s commitment to “gradually reduce” coal at the COP26 summit. [MET/L]

Data earlier today showed retail sales and industrial production growth last month in the world’s second-largest economy exceeded expectations, fueling optimism among global investors. [MKTS/GLOB]

The STOXX 600 hit a series of records this month as corporate earnings and accommodative central bank policy decisions boosted investor confidence, helping to distract from a COVID-19 resurgence in the region.

“The spikes we are seeing are due to the spending spree expected ahead of the Christmas festivities, with continued improvement in business operations likely to boost the outlook for European markets,” said Kunal Sawhney, CEO of Kalkine Group.

“Any major obstruction to business activity as a result of COVID-19, repeated closures, store closures and operating difficulties will potentially trace the surge in evidence that has lasted for months.”

Austria’s government on Sunday became the first European country to reinstate a new lockdown, placing millions of unvaccinated people on restrictions amid record infection rates.

France’s top-notch CAC 40 reached a record level, up 2.1% thanks to a relaunch of Airbus. The European aircraft maker has received a multibillion-dollar order for 255 A321neo single-aisle jets from airlines in the portfolio of private equity firm Indigo Partners.

Royal Dutch Shell added 2% after saying it would simplify its operations and move its headquarters to Britain from the Netherlands. The stock was the best performing among oil stocks, which rose 0.4%.

Meanwhile, Spanish bank BBVA has been the main drag on Spain’s blue chip IBEX, losing 3.7% on its offer to buy the remainder of Garanti BBVA for up to € 2.25 billion. ($ 2.6 billion).

Shares of Philips, which is recalling fans due to the use of parts containing potentially dangerous foam, fell 10.9% after the company announced it was in talks with US regulators over ” a new inspection of one of its facilities.

(Reporting by Anisha Sircar in Bengaluru; Editing by Sherry Jacob-Phillips and Aditya Soni)

Steve R. Hansen