European stocks reinforced by the reopenings
European stocks jumped up on May 18, recovering after their worst weekly losses. The investors were reassured by prospects of the economic reopenings as the containment measures are being lifted.
Energy giants BP, Royal Dutch and Total all gained around 6%. The market was galvanized by oil prices gaining over US$1 per barrel, reinforced by a grwoing demand and further output cuts.
Total got additional positive momentum after the new that the company has put its plans of buying the Ghanaian assets of Occidental Petroleum on ice. It also decided to acquire the Energías de Portugal assets.
STOXX 600 added 2%. Bourses in London, Paris and Frankfurt gained over 2% as well.
The Rabobank strategist stated, that right now the markets are being influenced by monetary decisions and are ignoring the threats in the long term. It is unlikely, that major indexes will come back to the highs of the late April.
The extraordinary stimulus packages from the governments assisted the STOXX 600 in recovering almost 25% after the March crash. The underwhelming business activity reports and new episode of the US-China conflict are yet to influence the growth.