Across the bloc, the COVID vaccination rollout programme has started to gather pace after a slower start at the beginning of the year. Photo: Horacio Villalobos Corbis/Corbis via Getty Images
Stock markets across Europe opened in the green on Monday as traders continued to cheer successful vaccine rollouts, resilient economic data and positive signals from the UK where reopening has begun.
In London, the FTSE 100 (^FTSE) rose 0.17% at the open, staying above the 7,000 mark it crossed on Friday. The French CAC (^FCHI) gained 0.19% and the German DAX (^GDAXI) was 0.24% higher.
Both the FTSE and DAX had retreated to trade flat after half an hour of trade.
“Accommodative monetary and fiscal policies are expected to remain in place which, coupled with the ongoing global vaccine rollout, provide a firm foundation for equities,” said Richard Hunter, head of markets at Interactive Investor.
Across Europe, COVID vaccinations have started to gather pace after a slow start at the beginning of the year.
Meanwhile, 32.8 million people in the UK have received a first dose of the coronavirus vaccine and 9.9 million have had a second dose, according to the latest government data.
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Across the pond, S&P 500 futures (ES=F) were down 0.2%, Dow futures (YM=F) shed 0.3%, and Nasdaq futures (NQ=F) were flat as trade began in Europe.
On Friday, both the Dow Jones (^DJI) and S&P 500 (^GSPC) had closed at record highs. The Nasdaq (^IXIC) is showing gains of 9% so far this year.
“Investors are feeling the sugar rush as the effects of major stimulus packages begin to translate into increasing evidence of a strong economic rebound,” Hunter said.
“In the US, the most recent data has reflected this impact, with robust showings from housing, retail sales and an improvement in the jobless claims number.
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“Meanwhile, the US banks have also reported significant profit hikes, reinforcing hopes that the recovery is firmly on track.”
Asian shares were mostly higher overnight amid cautious optimism about a global rebound. The Hang Seng (^HSI) rose 0.50% and the Shanghai Composite (000001.SS) climbed 1.50%.
The Nikkei (^N225), Japan’s benchmark index, quickly lost early gains and closed flat as investors reacted to a summit by prime minister Yoshihide Suga with president Joe Biden over the weekend.
“At the moment, it seems like markets are in that goldilocks zone: policy is accommodative and economic fundamentals improving – but not so much to increase expectations of an unsustainable recovery, inflationary pressures and tighter monetary policy,” Kyle Rodda of IG said.
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