European markets open increased, seeking to rebound from final week’s losses
European stocks opened higher Monday, looking to recover from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar.
The pan-European Stoxx 600 jumped 1.2% at the open, with banks adding 1.8% to lead gains as all sectors and major bourses entered positive territory.
The European blue chip index closed 3.7% lower for the week on Friday after a choppy session, with global markets roiled by a resurgence in coronavirus cases on the continent and further afield.
The U.S. has also seen a rise in daily cases ahead of Tuesday’s first presidential debate between President Donald Trump and Democratic challenger Joe Biden, with a Supreme Court fight also looming over Republican efforts to replace the late Justice Ruth Bader Ginsburg with conservative Amy Coney Barrett before the Nov. 3 election.
European markets are set for a mixed handover from Asia-Pacific, where South Korea’s Kospi index led gains while mainland Chinese shares lagged.
In Europe, Bank of England policymaker Silvana Tenreyro said in an interview published over the weekend that the central bank’s investigation into whether negative interest rates could help the British economic recovery has yielded “encouraging” results.
In corporate news, Reuters reported Sunday, citing sources, that Luxembourg steel giant ArcelorMittal is in talks to merge its U.S. assets with Cleveland-Cliffs, the largest producer of iron ore pellets in the U.S.
Daimler CEO Dieter Zetsche announced over the weekend that he would relinquish his role as chairman of the German automaker, with investors now calling for an independent figure to lead the supervisory board.
Commerzbank has named Manfred Knof, formerly head of German retail banking at Deutsche Bank, as its new CEO. Knof will replace Martin Zielke, who resigned in July along with chairman Stefan Schmittmann following a period of intense pressure from activist investors.
Siemens Energy is set to debut on the Frankfurt stock exchange Monday following its spinoff from tech giant Siemens.
European Central Bank President Christine Lagarde is scheduled to appear before the Committee on Economic and Monetary Affairs at 3:45 p.m. CEST.