European shares gain boosted by financials and US data
EUROPEAN shares rose on Monday, led by financials, buoyed by forecast-beating U.S. data and cautious market relief that Spain's recent bank stress test had met expectations.
The FTSEurofirst 300 index provisionally closed up 1.5pc at 1,104.97 points, while the euro zone Euro STOXX 50 index rose 1.9 percent to 2,501.00 points.
The financial and mining sectors were the best-performing indexes, with banks rising after stress test results on Spanish banks, released on Friday, failed to throw up any negative surprises.
Gains were extended in the afternoon session when U.S. factory data grew for the first time since May.
"Some of the stress test results have increased confidence in the Spanish banking system, even if Spain will probably still need support from the EU," said Cyrille Urfer, head of asset allocation at Swiss bank Gonet.
"But there are a lot of numbers from companies and on the economic front which are on the weak side, therefore we might get some pressure during the rest of the year. It would be a mistake to run after the market," he added.