European shares rose on Monday, hovering near ninemonth highs, as strong China data and hopes of a COVID19 vaccine renewed bets for a swifter economic recovery, while Spanish lender BBVA surged on a deal to sell its U.S. business.
The panEuropean STOXX 600 rose 0.7 by 1030 GMT, with banks and travel stocks gaining the most.
BBVA surged 16.45 to an eightmonth high after PNC Financial Services Group said it would buy its U.S. business for 11.6 billion in cash.
Chinas factory output rose faster than expected in October and retail sales surged, as a recovery in the worlds secondlargest economy from its COVID19 slump gathered momentum.
Solid and steady gains are arguably just what investors need after a very volatile period, with the catalyst for the latest move for equities being more positive noises on vaccines, Russ Mould, investment director at AJ Bell said in a note.
The benchmark STOXX 600 has gained nearly 40 from its March lows, but has underperformed its U.S. peers this year as a recent spike in coronavirus cases across Europe overshadowed optimism around a new vaccine.
Although Europes bank stocks outperformed other major sectors last week, their performance is the second worst this year as lenders grapple with rockbottom interest rates amid the COVID19 pandemic.
However, European Central Bank Vice President Luis de Guindos asked Euro zone banks on Monday to keep using their capital buffers to absorb losses without holding back credit to the real economy,…