European shares bounce back after volatile week

The pan-European STOXX 600 edged up 0.7% in early morning trading on Monday

Deutsche Bank added 2.9 per cent after JP Morgan upgraded the stock to “overweight”

Deutsche Bank added 2.9 per cent after JP Morgan upgraded the stock to “overweight”

 

Oil stocks helped drive a rebound in European stocks on Monday after sharp losses late last week when fears about the Omicron variant and the US monetary policy outlook weighed on investor sentiment.

The pan-European STOXX 600 edged up 0.7 per cent in early morning trading, with the energy sector climbing 1.4 per cent. Oil prices rose by more than $1 a barrel after top exporter Saudi Arabia hiked prices for crude sold to Asia and the United States.

Helping allay some concerns over Omicron, a South African health official said over the weekend that the variant caused mild infections, while top U.S. infectious disease official Anthony Fauci told CNN “it does not look like there’s a great degree of severity” so far.

Among stocks, French construction materials company Saint-Gobain rose 1 per cent after announcing it was acquiring all shares in US-based GCP Applied Technologies in a deal valued at around $2.3 billion.

Just Eat Takeaway.com slipped 3.3 per cent after Bernstein downgraded the stock to “market perform, while Deutsche Bank added 2.9 per cent after JP Morgan upgraded the stock to “overweight”.

- Reuters