European Stocks Near Record Levels Amid Hopes of Recovery

European stocks approached record highs Monday, March 29, thanks to optimism about the global economic recovery, while Credit Suisse plunged following a warning of “significant” losses due to exit from positions after a US-based hedge fund defaulted on margin calls.

Swiss bank shares lost 9.5% after it said an unnamed hedge fund defaulted on margin calls by Credit Suisse and other banks last week.

The European Stoxx600 index rose 0.3%, tracking gains in Asia as investor confidence in the global economic recovery from the US-led Covid-19 pandemic grew.

The index has lagged behind its counterpart in the United States in the past six months due to new closures on the continent and a slower than expected vaccination program, hurting the economic outlook for Europe.

The German DAX index rose 0.6% to an all-time high after data showed that the annual profits of Chinese industrial companies rose in the first two months of 2021, highlighting the recovery of the industrial sector.