European shares opened higher on Monday, on the back of a strong Wall Street performance and hopes of an accelerated Covid vaccine rollout with the Moderna jab now available.
Investors were keeping a wary eye on the row between AstraZeneca and the EU over vaccine provision with the 27-member bloc threatening to block the pharma giant exporting any does until it met contractual promises on supply.
“The virus situation in Europe continues to deteriorate and Germany delaying the EU Recovery Fund will not help the zones economic position,” said Rony Nehme, chief market analyst at Squared Financial.
“The market is still long but the story of US outperformance on the back of a swift vaccine roll out while Europe lags behind is becoming stronger. Equities were volatile at the end of last week and we expect the same again this week – which will be shortened with the Good Friday holiday – as we see funds managing their quarter end positioning.”
Oil prices fell as the cargo ship blocking the Suez Canal was partially refloated, raising hopes the vital route could re-open and allow backed-up container traffic to get through.
“The oil price has of late been drifting on concerns that hopes for the resumption of demand has been overstated, although it remains strongly ahead by 22% so far this year,” said Richard Hunter at interactive investor.
In equity news, Credit Suisse shares fell almost 9% after the bank warned of “significant” losses from exiting positions after a unnamed US-based hedge fund defaulted on margin calls.
