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A fresh high eluded European stocks throughout the last few weeks of 2021, but the region’s main index came out swinging on Monday, tapping a new high for the first trading day of 2022.
The Stoxx Europe 600 index
SXXP,
rose 0.4% to 489.78, but hitting a high of 491.43. The index last hit a record close on Nov. 17, 2021, of 489.95. It finished out 2021 with a gain of just over 22%, the biggest one-year percentage gain since 2019.
London stocks were closed for an extended New Year’s break, while Germany’s DAX
DAX,
surged 0.9% and the French CAC 40
PX1,
climbed 1%. Banks, food companies, autos and insurers were driving the positive action.
While COVID-19 cases sparked by the omicron variant continue to rip across Europe and the rest of the world, investor confidence that global economies can withstand the latest wave continued to drive markets higher, such as was seen in late 2021. Wall Street got off to a muted start, with gains for the Nasdaq Composite
COMP,
which took some wind out of Europe’s sails.
Airlines were also climbing, with demand high over the holiday season, even though COVID-triggered staffing shortages and weather issues triggered thousands of global cancellations on Sunday. Deutsche Lufthansa shares
LHA,
were among the best performers and Aeroports de Paris
ADP,
rose 4%.
Shares of Volvo
VOLCAR.B,
and Porsche Automobil
PAH3,
were up 7% and 4%, respectively.
Stock in Iveco Group slumped 11% in the first day of trading after the maker of commercial and specialty vehicles split from CNH Industrial
CNHI,
Zurich Insurance
ZURN,
shares rose 1%. The Swiss insurer said its subsidiary Zurich Investments Life SpA agreed to sell its Italian life and pension back book to GamaLife in a deal that should release $1.2 billion in capital.
