Europe Markets

European markets close higher as investors track Trump's health; Cineworld plunges 36%

Key Points
  • The pan-European Stoxx 600 closed 0.9% higher, with telecoms stocks climbing 2.3% to lead gains.
  • Trump said Sunday that "we are getting great reports from the doctors" after his Covid-19 diagnosis.

European stocks closed higher Monday as global markets were calmed by reports of President Donald Trump's health as he's treated for Covid-19.

The pan-European Stoxx 600 closed 0.9% higher provisionally, with telecoms stocks climbing 2.3% to lead gains as all sectors except utilities traded in positive territory.

European markets followed their counterparts in the U.S. and Asia-Pacific higher Monday as political uncertainty following Trump's Covid-19 diagnosis eased. On Wall Street, stocks rose as investors grew more hopeful that lawmakers would reach a compromise on a new stimulus deal in light of Trump contracting the virus and signs of a slowdown in the economic recovery.

Trump said in a minute-long video posted on Twitter late Sunday that "we are getting great reports from the doctors." The president also took a short, last-minute motorcade ride to wave to his supporters standing outside the hospital.

Nonetheless, the president's doctors said they had begun treating him with dexamethasone, a steroid recommended for severe cases of Covid-19. The president was said to have experienced two drops in his oxygen levels since his diagnosis announcement just before 1 a.m. ET on Friday.

Oil prices also saw a strong rebound during Monday trade, up over 6% by the close in Europe, following a drop on Friday.  

In terms of individual share price moves, British engineering firm Weir Group rallied almost 16% after the sale of its oil and gas division, while French utility Suez dropped over 4% after investment fund Ardian opted against bidding for the company.

Meanwhile, shares of FTSE 250 constituent Cineworld plunged 36% Monday, after the British cinema chain said it would close all of its U.K. and U.S. movie theaters this week.