European shares closed at a more than seven-week high on Monday amid a tech and travel stock boom. The benchmark STOXX 600 index gained 0.3% during the day’s trading, thereby extending its three-week gain.
Gambling company Flutter Entertainment Plc and low-cost airline Ryanair emerged as major winners on the day, up by 4.2% and 3.8% respectively, while Europe’s travel & leisure stock index edged towards a three-month high after gaining 1.6% before markets closed.
Aside from concerns regarding China’s reopening following its recent series of stringent COVID-19 protocols, investors are also looking toward the United States midterm elections on November 8, when Republicans and Democrats will vie for control of Congress.
“If we saw some positive China COVID news and the Republicans winning both the Senate and the House of Representatives, then I would see that being positive for European stocks,” Giles Coghlan, chief market analyst at HYCM said of the ongoing global events.
Outside of tech and travel stocks, Telecom Italia was a standout performer surging by 10.7% following news that the company’s top investor Vivendi would be entering into talks with the new Italian government over the creation of a new broadband company.