European Shares Rise As China Signals Policy Easing

European stocks rose on Monday, with optimism about a faster economic recovery and dealmaking activity boosting sentiment.

Meanwhile, the People’s Bank of China deleted several phrases in its latest monetary policy report, a move that economists say signals a shift toward more supportive monetary policy.

On the Covid-19 front, Austria closed shops, restaurants and festive markets in the most dramatic Covid-19 restriction seen in Western Europe for months.

The pan European Stoxx 600 edged up 0.2 percent to 487.06 after declining 0.3 percent on Friday.

The German DAX was marginally higher, France’s CAC 40 index inched up 0.2 percent and the U.K.’s FTSE 100 was up 0.3 percent.

Telecom stocks were in focus, with Telecom Italia climbing as much as 24 percent after a $12 billion bid from U.S. fund KKR to take Italy’s largest phone group private. Rival BT Group jumped 2.7 percent and Vodafone added 2 percent.

Similarly, Norway’s Telenor rose about 1 percent after it agreed to merge its telecom unit with Thailand’s Charoen Pokphand Group in a deal valued at about $8.61 billion.

Mobile telecoms equipment maker Ericsson lost 4 percent after agreeing to buy cloud communications firm Vonage for $6.2 billion.

Miner BHP gained about 1 percent after the merger of its petroleum arm with Woodside.
Diploma Plc rallied 3.7 percent. The supplier of specialized technical products and services reaffirmed guidance after reporting an improved profit for the year ended Sept. 30.

Marks and Spencer advanced 2.7 percent after reports that U.S. investment firm Apollo Global Management is mulling a buyout of the U.K. retailer.

Wind turbine maker Vestas tumbled 2.7 percent after it was hit by a cyberattack.

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