* Travel, mining stocks lead gains
* BA owner IAG jumps on multiple PT hikes
* Spain's Amadeus tops STOXX 600
* Positive EU manufacturing data boosts sentiment
(Updates with market close)
By Sruthi Shankar and Ambar Warrick
March 1 (Reuters) - European stocks ended higher on Monday after bond markets stabilized from a sharp selloff last week, with travel and leisure stocks leading gains on optimism over COVID-19 vaccination programmes and a large U.S. stimulus package.
Data also showed manufacturing activity picked up pace in major euro zone economies in February, inspiring some confidence about an economic recovery this year, while a separate reading showed German inflation held steady in the month. stocks had retreated from one-year highs last week as the possibility of rising inflation and higher bond yields fuelled concerns over monetary policy tightening by central banks.
Accommodative policies and bumper stimulus measures have enabled stocks to recover from pandemic-driven lows last year.
Global stocks rallied on Monday tracking a pullback in yields, while the rollout of a third COVID-19 vaccine in the United States, along with progress towards a $1.9 trillion stimulus package, also boosted sentiment. MKTS/GLOB
"Equities should prove resilient, but the recent pick-up in real yields deserves to be watched. It is more toxic for highly valued risk assets, including growth stocks," analysts at Generali (MI: GASI ) Investments wrote in a note.
Overall, the analysts said they maintained "a moderate pro-risk tilt", with potential pullback in stocks providing buying opportunities as economies look to re-open.
British stocks rose in anticipation of Finance Minister Rishi Sunak announcing more borrowing on top of his almost 300 billion pounds ($418 billion) of COVID-19 spending and tax cuts in a budget statement on Wednesday. such as Persimmon PSN.L , Taylor Wimpey TW.L and Barratt Developments BDEV.L were the top gainers on the FTSE 100 .
Among other movers, Spanish travel booking group Amadeus AMA.MC topped the STOXX 600 as expectations of a 2021 recovery in travel demand drove a slew of price target hikes by major brokerages.
British Airways-owner IAG ICAG.L also jumped 7% on similar upgrades.
French food group Danone DANO.PA rose 1.4% after it said it was taking a first step toward selling its stake in its Chinese dairy partner Mengniu Dairy 2319.HK , and would use the gains to buy back its own shares. shares of computer goods maker Logitech International LOGN.S rose 1.6% after it raised its sales growth forecast to about 63% for fiscal 2021, up from the 57-60% range it previously expected.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.