European Stocks Rise And Danone jumps After Chief Executive is Ousted

European stocks rose today on the back of gains from French food company Danone and Swiss pharmaceutical company Roche, with optimism about a strong economic recovery easing concerns about an acceleration in inflation.

The STOXX 600 index rose 0.7% in early trade, slightly close to its highest level last year, and the travel and entertainment sectors and automakers were among the biggest winners.

Danone’s stock jumped 4.9% after the company’s board of directors removed Emmanuel Faber as chairman and CEO, citing mounting pressure from shareholders.

Roche rose 1% after the company said it would buy Genmark Diagnostics, the US-based molecular diagnostic test maker, in a $1.8 billion deal.

The sentiment was also boosted by the increase in factory and retail activity in China in the first two months of the year, surpassing expectations, as the economy boosted its rapid recovery from paralysis caused by the outbreak of the Coronavirus in early 2020.

Milan-listed car maker Stellantis rose 3.9 % after Deutsche Bank began covering the stock with a “buy” recommendation.