(Bloomberg) — European stocks edged higher on Monday, adding to last week’s gains, as investors assess a surge in Covid cases and the impact it may have on the economic recovery. The U.K. market is closed for a holiday.
The Stoxx Europe 600 Index was up 0.3% in late morning, trading at its highest level in five weeks. Coronavirus infections have spiked across the globe over the weekend, with France reporting a daily record of more than 100,000 new cases. President Emmanuel Macron will hold later on Monday a health defense council and a cabinet meeting to discuss Covid measures.
Equities in the region are having a bumpy end of year as market participants weigh economic prospects amid the spread of the new omicron variant and as central banks have turned more hawkish in response to surging inflation. With only one week left of trading, Europe’s main index is 21% higher this year, about 1% away from its record.
“This week should be a transitional one, with few sessions, low volumes and not much news expected,” said Jaime Espejo, equities fund manager at Imantia Capital in Madrid. “The coronavirus threat is still very vivid as the infections rate is higher than expected.”
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