Wall Street

European Markets Start the Week Higher Despite Pandemic Fear

European markets open the week with a positive trend, despite concerns about the new wave of the virus and shares of Telecom Italia rise

Europe’s general Stoxx 600 index rose 0.3% during early trading, coinciding with the 1.1% rise in telecom companies, topping the financial markets’ gains with major stock exchanges and almost all sectors entering the positive upside.

This positive opening of European markets reflects the optimistic sentiment in other regions around the world, as US stock futures rose slightly in early pre-market trading on Monday, ahead of the start of the week that was shorter than usual due to the holiday, as the US markets will close on Thanksgiving Thursday and will close on Friday at 1PM ET, knowing that stocks are known to enjoy notable gains during Thanksgiving week, which may mark the starting point for a potential volatility through the end of the year.

European investors will be watching the spread of the COVID-19 virus across the continent after Germany and Austria last week re-imposed measures and restrictions to contain the infection.

One of the most important market moving events this week will be US President Joe Biden‘s nomination of the next Federal Reserve Chairman, at the same time, Asia-Pacific shares were mixed after China kept the record lending rate unchanged, and at the bottom of the broader European index, Swedish telecom operator Ericsson fell 4% after announcing its $6.2 billion purchase of cloud telecoms company Vonage.

The major corporate news on Monday came from Italy, with shares of Italy Telecom TIM flying more than 22% in early trade after receiving an offer of 10.8 billion euros ($12 billion) from the US KKR fund. Read more [US Investment Fund KKR Seeks to Acquire Telecom Italia].

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