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UPDATE 2-European shares mark best close in 10 months on Brexit, vaccine cheer

Published 12/28/2020, 05:55 PM
Updated 12/29/2020, 01:20 AM
© Reuters.
FCHI
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DE40
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STOXX
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SXEP
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SXAP
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IBEX
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* Germany's Delivery Hero tops STOXX 600
* Europe launches cross-border vaccination programme
* Germany's DAX index ends at record high
* London markets shut for Boxing Day
* Automakers cheer Brexit deal

(Updates to market close)
By Shashank Nayar and Ambar Warrick
Dec 28 (Reuters) - European shares marked their strongest
close in 10 months on Monday, with German shares hitting a
record high as relief over long-awaited U.S. coronavirus relief,
a Brexit trade deal and a vaccine programme lifted spirits in
thin holiday trade.
U.S. President Donald Trump on Sunday signed into law a $2.3
trillion pandemic aid and government spending bill, causing some
optimism over near-term economic prospects. The launch of a cross-border European vaccination programme
on Sunday also fuelled hopes of a pandemic-free second half in
2021 and of a strong economic rebound. Britain and the European Union signed a Brexit trade deal
late on Thursday, preserving several trade provisions for both
sides and limiting the scale of disruption resulting from the
divorce. The benchmark European stock index .STOXX rose 0.7% in a
fourth straight day of gains, while German stocks .GDAXI ended
1.5% higher at a record peak.
German food delivery firm Delivery Hero DHER.DE topped the
STOXX 600 with a 9.1% gain, ending at a record high after it
said it will sell South Korean food delivery app Yogiyo as part
of the conditions for regulatory approval of its takeover of top
South Korean food delivery app owner Woowa Brothers.

Automobile makers were among the top boosts to the German
index, given that the country is a major supplier of autos to
the UK. The striking of a trade deal appeared have cleared
several regulatory doubts over the future of the EU-UK auto
supply chain.
"We can finally breathe a big sigh of relief and say that
chaos over the stimulus bill is over," said Hussein Sayed, chief
market strategist at FXTM.
"A sell-off has been averted and this could provide one last
boost to risk assets in the last four trading days of the year."
However, many aspects of Britain's future relationship with
the EU remain to be hammered out, possibly over years..
Huge amounts of stimulus and vaccine optimism have seen the
STOXX 600 recover nearly 43% from its March lows, though it is
on course to end the year about 4% lower due to a severely
damaging second wave of coronavirus infections.
Among other European bourses, France's CAC 40 index .FCHI
and Spain's IBEX .IBEX ended 1.2% and 0.5% higher,
respectively.
Dutch technology firm Prosus PRX.AS bottomed out the STOXX
600 in the wake of a Chinese probe into local technology majors,
in one of whom Prosus holds a stake. London markets were shut due to Boxing Day.

(Editing by Alison Williams and Jonathan Oatis)

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