No more in airplane mode
The TRAI recommendation to allow in-flight Wi-Fi services is a positive step, and if structured properly, ...
European shares rebounded from six-month lows on Monday as jitters over a sudden spike in volatility that wiped off $1 trillion in market capitalisation last week appeared to ease.
Broad-based gains helped the pan-European STOXX 600 index rise 1.5 per cent by 0943 GMT, after ending on Friday at its lowest level since August. The UK's FTSE and Germany's DAX rose 1.3 and 1.8 per cent, respectively.
The euro zone volatility index fell back from peaks hit last week when a spike in inflation expectations boosted bond yields and fuelled worries over central bank tightening.
“We see this as a short-term correction rather than an end of cycle event,” UBS strategists led by Nick Nelson said.
“What could change that would be a significant move up in bond yields, well above current levels, combined with major inflation fears,” they wrote, noting however that fundamentals for European equities remained supportive.
The STOXX is down 3.9 per cent in the year to date. The cyclicals sectors which had led the sell-off drove the bounce on Monday, with materials stocks and banks among the best-performing sectors, up 3 and 1.5 per cent, respectively.
Miners Glencore, Rio Tinto and BHP all rose between 2.9 and 3.6 per cent as copper prices rose from its lowest in nearly two months as the dollar dropped. Elsewhere, upbeat broker notes pushed shares in Victrex and Delivery Hero to the top of the STOXX, sending their shares up 4 and 5.2 per cent, respectively.
Akzo Nobel rose 1.7 per cent after a source-based Financial Times report said that US private equity giant Apollo had teamed up with the biggest Dutch pension fund to buy the group's 10 billion-euro speciality chemicals unit.
However, Heineken fell 3.7 per cent after the world's second largest brewer lowered its margin growth target, blaming a volatile market environment and an acquisition in Brazil. Also in M&A news, TDC surged 5.9 per cent after the Danish telecom company said it had been approached by a potential bidder. In the same sector, SES fell 5.5 per cent after it announced management changes.