European stocks bounced on Monday after sharp losses last week as a selloff in bond markets eased, while optimism over COVID-19 vaccination programme and U.S. stimulus package further aided sentiment.
The pan-regional STOXX 600 index rose 1.6% by 0811 GMT following strong gains in Asian stocks despite weaker-than-expected manufacturing activity data out of China.
The European equities benchmark fell to a near one-month low on Friday as investors grew fearful that rising inflation due to another large U.S. stimulus package and the re-opening of the global economy could drive major central banks to tighten monetary policy.
The German DAX rose 1.3%, while France CAC 40 and UK’s FTSE 100 gained 1.5% each.
Miners, up 2.2%, were the top sectoral gainers, while travel & leisure and retail stocks jumped over 2%.
British Airways-owner IAG was the top gainer on STOXX 600, jumping 5.4% after Peel Hunt upgraded the stock to “buy” on expectations of a rebound in travel demand during summer.
The pan-European Stoxx 50 climbed up by 1.93% to 3,706.62. In the cash markets, the DAX futures Germany was trading up 1.64% to 14,012.82. CAC 40 futures in France climbed up by 1.57% to 5792.79 while the FTSE 100 futures in the U.K. rose by 1.62% to 6,588.53 ,at the time of writing.
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