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European stocks gain, spurred on by cyclical rally


(stock picture)

(stock picture)

Irochka - Fotolia

(stock picture)

European shares rose on Monday, with cyclical sectors leading gains as investors hoped the upcoming earnings season will feed into signs of an economic recovery from the coronavirus-induced downturn.

The pan-European STOXX index rose 0.8pc by 07:20 GMT, with banks, automakers and oil & gas rising between 1.2pc and 2pc.

Miners gained 2pc on optimism over China's recovery and surging metal prices.

Global investor sentiment also brightened at the start of a week that kicks off the United States and European quarterly earnings season and includes a summit over the European Union recovery fund and a European Central Bank policy meeting.

Finnish valves maker Neles jumped 35.8pc to the top of STOXX600 after Swedish industrial group Alfa Laval announced a recommended €1.73bn cash bid.

Nordic bank DNB rose 9pc and Nordic Semiconductor gained 7.7pc following better-than-expected earnings reports.