European Markets: FTSE, GDAXI, FCHI, IBEX
German Finance Minister Olaf Scholz said on Sunday that Germany has the fiscal strength to mitigate any future economic crisis with “full force” and suggested that Berlin could free up around 50 billion euros ($55 billion) of extra spending.
Meanwhile, China’s central bank unveiled a key interest rate reform on Saturday intended to lower borrowing costs for companies and reinvigorate an economy being negatively impacted by its trade war with the U.S. U.S. Treasury yields, which has been causing global fears of a recession after plunging last week, showed signs of a rebound Monday.
On Wall Street, stocks continued to bounce back from last week’s sharp sell-off, as Treasury yields rebounded and the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei.
Michael Gove, the minister in charge of planning for a no-deal scenario, said the documents were based on a worse-case scenario, while British news outlets cited government sources as blaming the leak on a hostile former minister intent on undermining Prime Minister Boris Johnson’s negotiations with the bloc.
In terms of individual stocks, British pub group and brewer Greene King surged almost 51% by the end of the trading session, after it was announced that a unit of Hong Kong’s CK Asset Holdings would buy the company for £2.7 billion.
Meanwhile, online supermarket Ocado was another top performer, rising 4.6% after J.P. Morgan flagged a “tipping point” in profitability.
At the other end of the European blue chip index, Dutch chemicals company IMCD slipped 2% after its earnings report on Friday cited a challenging macro-economic environment as impacting growth for the second quarter.