European Stocks Enter a New Quarter With Limited Gains

European stocks began the new quarter with limited gains Thursday, April 1, as concerns about another wave of Covid-19, with France imposing a third lockdown measure, overshadowed optimism about a new spending plan for the US government.

The European Stoxx600 index rose 0.2% in early trade, hovering three points below its all-time high. The benchmark index ended Q1 with an increase of 7.7%, posting gains for the fourth consecutive quarter.

European chip companies including rose between 1.8% and 4.4% after US Micron Technology issued an optimistic earnings forecast.

Meanwhile, chipmaker TSMC said it plans to invest $100 billion over the next three years to increase production capacity at its factories.

Shares of retail and travel companies in France have come under pressure after the latest lockdown measures. Shares in French group Accor Hotels rose 0.3%, while foodservice companies Sodexo and Elior declined nearly 2%.