UPDATE 2-European shares mark best close in 10 months on Brexit, vaccine cheer

  • Reuters
  • Stock Market News
UPDATE 2-European shares mark best close in 10 months on Brexit, vaccine cheer
Credit: © Reuters.

* Germany's Delivery Hero tops STOXX 600

* Europe launches cross-border vaccination programme

* Germany's DAX index ends at record high

* London markets shut for Boxing Day

* Automakers cheer Brexit deal (Updates to market close)

By Shashank Nayar and Ambar Warrick

Dec 28 (Reuters) - European shares marked their strongest close in 10 months on Monday, with German shares hitting a record high as relief over long-awaited U.S. coronavirus relief, a Brexit trade deal and a vaccine programme lifted spirits in thin holiday trade.

U.S. President Donald Trump on Sunday signed into law a $2.3 trillion pandemic aid and government spending bill, causing some optimism over near-term economic prospects. launch of a cross-border European vaccination programme on Sunday also fuelled hopes of a pandemic-free second half in 2021 and of a strong economic rebound. and the European Union signed a Brexit trade deal late on Thursday, preserving several trade provisions for both sides and limiting the scale of disruption resulting from the divorce. benchmark European stock index .STOXX rose 0.7% in a fourth straight day of gains, while German stocks .GDAXI ended 1.5% higher at a record peak.

German food delivery firm Delivery Hero DHER.DE topped the STOXX 600 with a 9.1% gain, ending at a record high after it said it will sell South Korean food delivery app Yogiyo as part of the conditions for regulatory approval of its takeover of top South Korean food delivery app owner Woowa Brothers. makers were among the top boosts to the German index, given that the country is a major supplier of autos to the UK. The striking of a trade deal appeared have cleared several regulatory doubts over the future of the EU-UK auto supply chain.

"We can finally breathe a big sigh of relief and say that chaos over the stimulus bill is over," said Hussein Sayed, chief market strategist at FXTM.

"A sell-off has been averted and this could provide one last boost to risk assets in the last four trading days of the year."

However, many aspects of Britain's future relationship with the EU remain to be hammered out, possibly over years.. amounts of stimulus and vaccine optimism have seen the STOXX 600 recover nearly 43% from its March lows, though it is on course to end the year about 4% lower due to a severely damaging second wave of coronavirus infections.

Among other European bourses, France's CAC 40 index .FCHI and Spain's IBEX .IBEX ended 1.2% and 0.5% higher, respectively.

Dutch technology firm Prosus PRX.AS bottomed out the STOXX 600 in the wake of a Chinese probe into local technology majors, in one of whom Prosus holds a stake. markets were shut due to Boxing Day. (Editing by Alison Williams (NYSE: WMB ) and Jonathan Oatis)

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