European Markets Surge on China's Stimulus Hopes

European shares have reached their highest levels in six weeks, bolstered by gains in mining and luxury stocks following China's pledge to stimulate its economy. Despite political challenges in France and geopolitical tensions, markets show resilience, with notable movements in stocks such as LVMH, Kering, and Hellofresh.

European shares closed at their highest levels in six weeks on Monday, driven by gains in mining and luxury sectors. This rally followed an announcement of renewed stimulus from China aimed at reviving its slowing economy.

The pan-European STOXX 600 index slightly rose by 0.1%, marking its eighth straight session of gains. Notably, European miners linked to China surged by 3.2%, achieving their largest single-day increase in over a month. This was in response to reports that the Politburo plans to adopt an 'appropriately loose' monetary policy next year to fuel economic growth, a shift not seen since 2010.

Luxury stocks like LVMH and Kering, companies heavily reliant on Chinese revenue, each saw increases over 3% boosting France's CAC 40 index for the eighth consecutive day. However, political uncertainty surfaced in France with President Macron still to appoint a new prime minister, despite the far-right National Rally (RN) facing a significant by-election defeat. In Germany, the DAX slipped slightly but remained near record highs.

(With inputs from agencies.)