European stocks rose on Monday, helped by data showing the Asian economic recovery is accelerating even as the U.S. and Europe struggle to get to grips with COVID-19. Spanish banks surged after BBVA reached a pact to sell its U.S. division.
Up 5% last week after early data from U.S. drugmaker Pfizer
and German partner BioNTech’s
coronavirus vaccine showed it was 90% effective, the Stoxx Europe 600
added 0.7%. The basic resource sector
which is particularly sensitive to Asian economic growth, led the gains.
Futures on the Dow Jones Industrial Average
rose 259 points.
The recovery in the world’s number-two economy seems to be accelerating, with China’s industrial production jumping 6.9% in the 12 months to October and retail sales rising 4.3%. Japan’s third-quarter gross domestic product rose a stronger-than-forecast 5% in the third quarter. China and Japan also were among the signatories to the Regional Comprehensive Economic Partnership, a free-trade pact covering 15 key Asian countries apart from India.
U.S. hospitalizations for COVID-19 reached a record high on Sunday, according to data from the COVID-19 project, as various regional restrictions begin to kick in. U.K. Prime Minister Boris Johnson, who has suffered from COVID-19 before, is now self-isolating after meeting a member of parliament who contracted the virus, though he is not reported to be showing any symptoms. News that the Biden administration didn’t endorse a national lockdown proved supportive for stocks.
It is also a critical week for negotiations between the U.K. and European Union on a trade deal, as current terms expire at the end of the year.
soared 15% after agreeing to sell its U.S. operations to PNC Financial Services
for $11.6 billion. The news sent Banco Sabadell
up 13%, as it helped to rekindle previous speculation BBVA could buy it. Banco Santander
rose 3%, as the mobile-phone operator reported a 1.9% decline in its half-year adjusted earnings before interest, depreciation and amortization, on a 2.3% drop in revenue. Vodafone maintained its dividend and reiterated its free cash flow and Ebitda guidance.
shares jumped 14%, after replacing its chairman with a director who was critical of the commercial-real-estate company’s strategic plans. A capital-raising plan was rejected by shareholders last week.