European equities were sharply higher on Monday morning as global markets rebounded after posting their worst week in years.
The pan-European Euro Stoxx 600 index was up 1.3 percent in early trade with all major bourses and sectors in positive territory.
Basic resources and chemicals were the top performing sectors in early deals boosted by several rating upgrades. In particular, the British polymer solutions firm Victrex rose to the top of the European benchmark, up by 4.7 percent, following an upgrade from Bank of America Merrill Lynch.
Delivery Hero was also among the top performers in Europe, up by more than 4 percent, following a target price increase from J.P. Morgan.
On the other hand, the French firm Ses dropped to the bottom of the index, down by more than 5 percent, after announcing management changes.
In Asia, stocks closed higher continuing the rebound seen on Wall Street last Friday. The Dow rose 1.38 percent on Friday but still posted its worst week in two years. Dow futures are actually pointing to a triple-digit increase when markets open later on Monday.
Speaking to CNBC Sunday, International Monetary Fund Managing Director Christine Lagarde noted that “there’s been a market correction of anywhere between 6 to 9 percent” and she described it as “a welcome correction.”
Heineken down 3%
Back in Europe, investors are focused on earnings reports. Heineken was among the worst performing stocks, with shares down by 3 percent after the brewer lowered its margin growth target for 2018.
Meanwhile, Barclays was back in the headlines after U.K. authorities decided to charge the bank a second time for its emergency fundraising back in 2008. The stock was nonetheless up by almost 1 percent.
In other corporate news, Apollo has joined forces with a Dutch pension fund to buy part of Akzo Nobel’s business, the Financial Times reported. The latter was up by 1.3 percent in early deals.
In Germany, Chancellor Angela Merkel on Sunday said that the “painful” concessions made to her coalition party do not mean that her power has diminished ahead of her fourth term as leader.
Investors will also keep an eye on the U.S., where President Donald Trump is set to unveil a $200 billion infrastructure plan. The plan is set to face criticism from Democrats in Congress, arguing it doesn’t offer as much funding as they want, Reuters reported.
— With assistance by Silvia Amaro