(For a live blog on European stocks, type LIVE/ in an Eikon news window)
* Banks rally, touch highest level in nearly a month
* Euro zone retail sales rebound sharply in May as lockdowns ease
* UK homebuilders jump on report on property tax relief
* German recovery from pandemic to be slow and painful, data shows
* AMS jumps on getting EU approval for 4.6 bln euro Osram buy
(Updates to close)
By Sruthi Shankar and Susan Mathew
July 6 (Reuters) - European shares closed at their highest in nearly a month on Monday, as upbeat economic data tied in with a rally in China's markets on hopes of recovery from a coronavirus-induced slump.
Data showing a record rebound in euro zone retail sales in May following a pandemic-driven historic slump in the previous two months, and an unexpected growth in the U.S. services sector last month further bolstered sentiment. the appetite for risk rose after mainland China stocks .SSEC .CSI300 jumped more than 5%, as investors stocked up on cheap funding to invest in an economy that analysts predict will recover faster and better than other major countries battling new waves of infections. .SS
"Trading exuberance in China, improving economic data, and hopes for renewed stimulus efforts," support the day's rally, said Edward Moya, senior market analyst at OANDA, New York. He added that markets will continue to overlook increases in U.S. COVID-19 cases until fatality numbers surge. industrial orders data suggesting Germany's recovery from the pandemic will be slow and painful gave some a pause for thought. sentiment is still not euphoric, most brokers are cautious in the short term and investor positioning remains muted," said Berenberg strategists in a note.
Europe's STOXX 600 has recovered about 37% since March lows driven in part by large stimulus measures and vaccine hopes, but its still remains about 10% lower for the year.
Among individual stocks, sensor maker AMS AMS.S climbed 4% on getting EU antitrust clearance for its 4.6-billion-euro ($5.20-billion) acquisition of German lighting group Osram OSRn.DE . speciality chemicals group Clariant CLN.S slumped 12.6% to the bottom of STOXX 600 on trading ex-dividend.
UK homebuilders Persimmon PSN.L , Taylor Wimpey TW.L and Barratt Developments BDEV.L rallied on reports that British Finance Minister Rishi Sunak planned to raise a property tax threshold, among other steps to reduce the economic toll of the health crisis. .L
Barratt said it was starting the new financial year with "cautious optimism" as its forward order book improved.
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.