European indices mostly rise on optimism about coronavirus vaccine

European indices mostly rise on optimism about coronavirus vaccine

European indices mostly rise on optimism about coronavirus vaccine

Stock indices of Western European countries are mainly increasing during trading on Monday.

The composite index of the largest enterprises in the region Stoxx Europe 600 by 11:44 Moscow time rose by 0.27% and amounted to 368.94 points.

The British FTSE 100 indicator rose by 0.16%, the German DAX – by 0.27%, the French CAC 40 – by 0.46%, the Spanish IBEX 35 – by 0.25%. At the same time, the Italian FTSE MIB fell 0.07%.

The indices are rising amid renewed hopes for a coronavirus vaccine. The Anglo-Swedish pharmaceutical company AstraZeneca (LON: AZN) and the University of Oxford have resumed clinical trials of a coronavirus vaccine, suspended on September 6. The company said in a statement that the decision to resume testing was made after the UK's Medicines and Healthcare Products Administration (MHRA) confirmed their safety.

Markets are also boosted by news about deals made by companies.

American biopharmaceutical company Gilead Sciences Inc (NASDAQ: GILD). announced that it has entered into an agreement to acquire the developer of the drug against breast cancer Immunomedics Inc. for $ 21 billion. According to a press release from Gilead, the company will pay $ 88 per share for Immunomedics, which is 108% higher than its price at the close of trading on Friday.

Japanese SoftBank Group Corp. sells its British processor developer Arm Holdings to American Nvidia Corp (NASDAQ: NVDA). as part of a $ 40 billion deal

Investors this week await the outcome of the meeting of the US Federal Reserve System (FRS), the Bank of Japan and the Bank of England.

Last week, a meeting of the European Central Bank (ECB) was held, following which the regulator expectedly kept the base interest rate on loans at zero, the rate on deposits at minus 0.5%. The regulator also did not change the volume of the Pandemic Emergency Purchase Program (PEPP), leaving it at 1.350 trillion euros, as experts expected.

Lagarde said last Sunday that the rise in the euro will partially offset the positive impact of the ECB's stimulus measures on inflation, and reiterated that the regulator is ready to adjust all its instruments if necessary.

Lagarde noted that the recovery of the eurozone economy is active, but at the same time uneven and unfinished. Difficult economic conditions continue to negatively impact price pressures, she said.

AstraZeneca shares lost 0.05% during trading on Monday.

Euronext NV shares are down 2.5%. The largest exchange in Europe has sent a non-binding offer to buy Borsa Italiana from the London Stock Exchange (LON: LSE) Group PLC (LSEG), the operator of the London Stock Exchange. The price of LSEG shares decreased by 0.2%.

At the same time, shares of European technology companies are getting more expensive: quotations of shares of the German software manufacturer SAP SE are growing by 0.3%, the manufacturer of equipment for chips ASML Holding NV (AS: ASML) – by 0.6%.

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