European shares regain footing after torrid time last week

Banks helped to lift Iseq in Dublin by 1.3%

European shares ended decidedly higher on Monday as an unexpected rise in German business morale underscored the resilience of the region’s largest economy.

US stock indexes also climbed as investors bought beaten-down banks and Apple shares after a turbulent week last week, when equities were battered.

Dublin

The Iseq index rose almost 1.3 per cent, buoyed by the big banks as financial stocks rose across Europe. Bank of Ireland finished the session ahead by almost 5 per cent to €6.15, while AIB was up more than 4.5 per cent to €2.39.

It was also a good day for property-related stocks on the Irish market, despite hints from the European Central Bank that rates will rise quickly, which could hit affordability. Cairn Homes was up by 2.3 per cent to €1.05 while Glenveagh Homes rose 3.7 per cent to 95 cents per share. Irish Residential Properties Reit closed ahead by 1.7 per cent to €1.40.

London

UK’s top share index, the FTSE 100, rose 1.7 per cent, aided by gains in financials and strength in resource-linked shares. The domestically-oriented FTSE 250 advanced 1.6 per cent.

Mining and oil and gas sectors rose 2.9 per cent and 2.3 per cent respectively, boosted by higher commodity prices, amid plans to end Covid-19 lockdowns in top metals consumer China and as the US dollar retreated. Meanwhile, banks and insurers rose 2.5 per cent and 2.3 per cent respectively.

Shares of Kingfisher, which owns B&Q, climbed 2.2 per cent after the company reported first-quarter sales significantly ahead of its pre-pandemic performance and maintained its full-year outlook. Sales fell by 5.8 per cent in the three months to April. The business said this was still "resilient" and that recent pressure on supply chains have improved. Although sales have dropped since last year, they are still considerably ahead of 2019 as the pandemic sparked a DIY boom.

Ted Baker fell 0.9 per cent after the fashion chain said private-equity firm Sycamore was no longer part of its sale process, and that it had now received several revised takeover proposals from other parties.

Online greetings card company Moonpig climbed 11.1 per cent to record its best session ever after it agreed to buy Smartbox, a gifting experiences platform, for £124 million in cash.

Digital services company Kainos Group jumped 19.3 per cent to the top of FTSE 250 midcap index after posting strong annual results.

Europe

The pan-European Stoxx 600 index ended 1.3 per cent higher. German shares rose 1.4 per cent.

Commodity-linked stocks gained about 2 per cent on the back of higher oil and base metal prices, while banks rose 2.3 per cent.

Wind turbine maker Siemens Gamesa jumped 6.2 per cent after Siemens Energy launched a €4.05 billion bid for minority holdings in the struggling unit. Siemens Energy's largest shareholder – Siemens AG – rose 1.4 per cent.

Deutsche Euroshop soared 40.1 per cent after a consortium of bidders offered €1.4 billion to acquire the German shopping centre investor.

New York

All of the 11 major S&P sectors advanced, with financials and energy up 3.8 per cent and 2.4 per cent, respectively.

Banks added 6.1 per cent, after falling 16.7 per cent so far this year. Shares of JPMorgan jumped 7.7 per cent after the biggest US lender by assets lifted its 2022 outlook for net interest income and affirmed its profitability target.

Cloud service provider VMware surged 20.7 per cent after reports over the weekend said chipmaker Broadcom was in talks to acquire the company. Broadcom fell 2.6 per cent.

US-listed shares of Didi Global added 1.3 per cent after a majority of the Chinese ride-hailing giant's shareholders voted in favour of its plan to delist from the New York Stock Exchange. – Additional reporting: Reuters