European Stocks Climb Boosted by Trump's Treasury Nomination

Europe's main stock index surged to a two-week high, influenced by Donald Trump's Treasury Secretary pick and positive remarks on monetary policy by the ECB's chief economist. The STOXX 600 climbed, with Wall Street futures also rising. Notable company movements included UniCredit's surprise offer and Anglo American's asset sale.

Europe's leading stock index reached a two-week high as trading commenced on Monday, buoyed by the nomination of Donald Trump's Treasury Secretary and encouraging comments on monetary policy by the European Central Bank's chief economist.

The pan-European STOXX 600 climbed 0.5% by 0810 GMT, largely driven by gains in basic resources and personal household goods shares. Concurrently, Wall Street futures and a decrease in U.S. Treasury yields were observed following Trump's appointment of fund manager Scott Bessent as Treasury secretary, known for his cautious approach to U.S. debt.

Furthermore, ECB chief economist Phillip Lane expressed that the central bank should not keep its policies overly restrictive for a prolonged period, while noting that achieving a 2% inflation target will require additional time. Among individual stock performances, Italy's UniCredit saw a 2% decline after proposing a 10 billion euro all-share offer for domestic competitor Banco BPM, which increased by 5%.

Commerzbank shares dropped 6% as investors considered the implications of the offer on a potential buyout deal by UniCredit. Meanwhile, Anglo American's shares rose by 2% due to the mining company's plans to divest its Australian coal mines for up to $3.78 billion. ($1 equates to approximately 0.9569 euros).

(With inputs from agencies.)