European shares rise on German election relief and energy gains
09:49, 27 September 2021
European stocks rose on Monday morning, with oil and gas shares adding 1.8% to lead the gains, and German shares hitting a 10-day high.
The DAX jumped 0.9% after results of Germany’s federal election outcome became clear. The centre-left Social Democrats won their first national election since 2005, and the party has said it will now seek to form a coalition with the Greens and the liberal Free Democrats.
“The left-wing Die Linke party’s poor election showing appears to have ruled out a left-wing alliance, and its likely negative impact on German stocks,” BlackRock Investment Institute told Reuters.
German real estate company Vonovia, aircraft engine maker MTU Aero Engines and renewables company Siemens Energy were the top gainers on the DAX.
Oil and gas index
Meanwhile, the oil and gas index climbed 1.8% to hit a three-month high as Brent futures moved towards $80 a barrel in the midst of supply concerns.
TotalEnergies, Royal Dutch Shell and BP rose between 1.8% and 2.4% Monday morning, supplying the biggest boost to the pan-European STOXX 600.
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Other stocks on the move
Other movers included IWG, which jumped 6.3% to the top of the STOXX 600 after it was reported that the British office rental firm is exploring splitting its business into several companies.
Zooplus AG gained 4.2% after Swedish private equity firm EQT AB made an offer to buy the online pet supplies’ retailer, while Spain’s Cellnex Telecom slid 3% after Citigroup downgraded the stock to sell, citing valuation concerns, according to Reuters news agency.
On the up in the UK
Meanwhile, Cineworld shares jumped 11.75% on London’s FTSE 100 in anticipation of Daniel Craig’s final outing as 007.
Petrofac shares were another big mover in early trade Monday, up 16.91% after the oil provider reached a plea bargain with the UK’s Serious Fraud Office following implications with some of its former employees.
Airline shares were also strong in early trading on Monday, including International Airline Group shares, which were up 4.85% as Covid-19 travel restrictions continue to ease and following the US reopening its border to British citizens.
Read more: Germany’s Social Democrats narrowly win national election