European stocks rose on Monday, on hopes that the arrival of vaccines as early as next month will start to reverse the economic effects of the second wave of coronavirus.
Up 1.1% last week, the Stoxx Europe 600 SXXP,
The German DAX DAX,
Futures on the Dow Jones Industrial Average YM00,
U.S. hospitalizations for COVID-19 set a record for the 29th consecutive day on Sunday, according to the COVID tracking project. On a per capita basis, Central European countries including Austria, the Czech Republic and Poland have the highest number of new cases.
The flash eurozone composite purchasing managers index fell to a six-month low in November due to the lockdowns across Europe, according to IHS Markit.
More good news came on the vaccine front as drugmaker AstraZeneca AZN,
Drugmaker Pfizer PFE,
“This is the third Monday in a row when encouraging vaccine news has hit the markets, and each time the positive impact on equities and other risk-linked assets has been getting smaller,” said Marios Hadjikyriacos, investment analyst at XM. “A vaccine is great news, but the global economy has to get through a long winter first.”
Investors also are watching the status of trade negotiations between the U.K. and the European Union. Politico reported that the European Parliament is preparing for an extra plenary session between Christmas and New Year’s Eve to give consent to a possible post-Brexit trade deal.