LONDON — European stock markets started their week on a high, rallying on the back of China’s moves to stabilize the yuan.
The FTSE MIB in Milan led the uptick in morning trading, climbing 4 percent to 17,171.58, followed by the CAC 40 in Paris, 3.6 percent to 4,136.79. The DAX in Frankfurt was up 2.9 percent to 9,231.52; and the FTSE 100 in London gained 2.2 percent to 5,835.07.
The euro traded at $1.23, while the pound fetched $1.45 and the Swiss franc equaled $1.02 at 12:20 p.m. CET.
Retail and luxury stocks were also on the upswing, with the morning’s biggest gainers including Yoox Net-a-porter, 5.9 percent to 25.80 euros; Boohoo.com, 3.2 percent to 0.40 pounds; Swatch Group, 4.7 percent to 65.90 Swiss francs; LVMH Moët Hennessy Louis Vuitton, 4.6 percent to 152.65 euros, and Geox, 3.8 percent to 2.93 euros.
Among the very few stocks that lost ground were Britain’s Bonmarché Holdings, 1.5 percent to 1.76 pounds; and Koovs.com, 0.8 percent to 0.16 pounds.
Earlier on Monday, China’s central bank set the yuan at a stronger rate, a move that should dampen fears of worldwide deflation. On Monday, the yuan was trading at $0.15, and the bank said it planned to keep the currency stable against a basket of currencies, rather than devalue it in a bid to spur the country’s exports.