(For a live blog on European stocks, type LIVE/ in an Eikon news window)
* Oil majors up as crude prices surge 6%
* Spanish stocks outperform on bank M&A talks
* Cineworld slumps on shutting theatres
(Updates to market close)
By Sruthi Shankar
Oct 5 (Reuters) - European shares closed at a two-week high on Monday, as positive updates on U.S. President Donald Trump's health, a U.S. stimulus package and a spate of dealmaking activity lifted investor spirits.
The pan-European STOXX 600 index .STOXX gained 0.8%, extending gains from last week. Sectors considered more economically sensitive such as oil and gas .SXEP , travel and leisure .SXTP , and automakers .SXAP boosted the main markets.
That was despite a 36.2% plunge in Cineworld CINE.L after the world's second-biggest cinema chain said it would close all of its UK and U.S. movie theatres later this week, leaving as many as 45,000 workers unemployed. majors Royal Dutch Shell RDSa.L , BP BP.L and Total TOTF.PA surged, with crude prices jumping more than 6%. O/R
Investors took heart from signs that Trump's health is improving after he tested positive for COVID-19 on Friday, news that sent financial markets into a tailspin. treating Trump said he could be sent back to the White House as soon as Monday, although outside experts warn that his case may be severe, raising uncertainty about the outcome of the Nov. 3 presidential election and a new U.S. fiscal stimulus being debated by lawmakers in Washington. may remain choppy over the coming weeks," said Graham Secker, chief European equity strategist at Morgan Stanley (NYSE: MS ).
"Once we get some clarity on the U.S. election, Brexit and vaccine front, I think that's going to be a positive catalyst for market.
"In the next 3-6 months view, this is a market where you'd want to buy into the weakness because we do expect 2021 to be quite a lot better than what we have been seeing this year."
Madrid-listed stocks .IBEX outperformed with 1.2% on reports of consolidation in the banking sector.
Unicaja UNI.MC jumped 15.1% after it confirmed reports that it was in preliminary talks for a potential merger with its peer Liberbank LBK.MC , which surged 13.6%. Nexi NEXII.MI rose 3.1% after SIA and it agreed a long-awaited merger to create a dominant domestic payments group with 1.8 billion euros ($2 billion) in revenue. waste and water utility Suez SEVI.PA fell 4.2% after investment fund Ardian decided not to make a bid in competition with bigger rival Veolia VIE.PA .
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.