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European stocks advanced Monday, extending recent gains as vaccines are rolled out, restrictions are lifted and stimulus works its way through the global economy.
After its strongest week since mid-November, the Stoxx Europe 600 SXXP, +0.61% traded 0.5% higher. The European benchmark is up nearly 7% this year, outperforming leading benchmarks in the U.S. SPX, +0.10% and Asia MS302000, .
U.S. stock futures ES00, +0.23% NQ00, +0.20% were mixed and the yield on the U.S. 10-year Treasury TMUBMUSD10Y, 1.619% was 1.62%.
Strategists at Goldman Sachs say European value stocks have outperformed growth by 15% since October, and they say the value rally over growth can continue by another 19%.
“The prospects of re-opening economies in 2021 has lead to improving macro growth expectations following the positive vaccine news towards the end of last year. The economic impact of the second-round lockdowns has also been milder with [Stoxx 600] companies beating earnings per share expectations in Q4. In the U.S., the passage of the nearly $1.9 trillion American Rescue Plan Act will give another boost to the global recovery,” said strategists led by Sharon Bell.
The Fed is meeting Wednesday with a challenging messaging dilemma, as the central bank will have to simultaneously explain why the economy is improving but that it wants to be patient in removing stimulus.
Of stocks on the move, Danone BN, +4.99% rallied 4% as the yogurt maker’s board ousted Chairman and CEO Emmanuel Faber and said it’s looking for a new permanent chief executive. Gilles Schnepp, the chairman and chief executive of industrial group Legrand, has become Danone’s chairman.
Flutter Entertainment FLTR, +6.77% FLTR, +6.61% shares surged 6% as it said it’s considering a U.S. initial public offering of a “small share” of its sports-betting and daily fantasy site FanDuel. FanDuel rival DraftKings DKNG, +0.20% has surged 508% over the last 12 months.
H&M HM.B, +1.77% shares rose 2% as the clothing retailer said sales in the first two weeks of March jumped 10% as stores in its largest market, Germany, reopened.
