Publications
Partners
London - European equities rebounded on Monday after a torrid week, with London boosted by Shire Pharmaceuticals' backing of a takeover by US giant AbbVie, while the aviation sector flew into focus.
Investors were also eyeing US bank results and testimony this week from the head of the Federal Reserve about the state of the US economy and the likely timeline for raising interest rates.
In afternoon deals, London's FTSE 100 added 0.91% to 6 750.86 points, Frankfurt's DAX 30 gained 1.09% to 9 772.15 points and the Paris CAC 40 won 0.77% to 4 349.71.
Milan rose 0.40% and Madrid increased by 0.70%, while Lisbon stocks edged up by 0.66% as worries eased over a potential fallout from the plight of troubled lender Banco Espirito Santo (BES).
In New York, US stocks scored solid gains in opening trades after Citigroup's better-than-expected earnings and a rash of merger and acquisition activity.
In the first five minutes of trade, the Dow Jones Industrial Average jumped 0.60% to 17 045.53.
The broad-based S&P 500 advanced 0.51% to 1 977.69, while the tech-rich Nasdaq Composite Index rose 0.51% to 4 438.20.
European markets had fallen heavily last week as troubles at Portugal's largest listed lender, BES, raised fears of a possible default and a return to the dark days of the eurozone debt crisis.
But equities clawed back some ground on Friday, and recovered further on Monday as BES began operations under a new boss.
"After a pretty gruesome week... traders have taken the weekend to calm down and decided that the recent woes of bad economic data and the flaring up of the eurozone crisis isn't a sign of the long-awaited correction," said Capital Spreads dealer Jonathan Sudaria.
"Whether or not they are correct is something that will have to be seen."
Banking giant Citigroup announced second-quarter earnings per share of $1.24, excluding a $7bn legal settlement, well above the $1.05 projected by analysts.
"The catalysts for the bullish bias include a positive showing by foreign markets, better-than-expected earnings from Citigroup, and a spate of M&A activity," said Patrick O'Hare of Briefing.com.
Back in Europe, London's top gainer was Sports Direct, whose share price surged 3.80% to 724.50 pence after the retailer unveiled plans to launch in Australia and New Zealand via an online partnership.
Shire Pharmaceuticals meanwhile recommended a revised $53.6bn takeover from US giant AbbVie and said it was in "detailed discussions" over terms, ending its opposition to a deal.
"Shire Pharmaceuticals are trading higher but cautiously below the proposed offer price, suggesting investor nerves that the deal may not go ahead," noted Mike McCudden, head of derivatives at stockbroker Interactive Investor.
In Paris, Airbus Group shares won 0.48% to €47.34 after the company launched the eagerly-awaited upgrade to its long-haul A330 passenger jet - the A330neo - which boasts more fuel-efficient engines.
The European planemaker also announced that US-based Air Lease Corporation has made a firm order for 60 single-aisle Airbus A321neo planes worth $7.23bn at list prices.
The news was unveiled on the first day of the Farnborough airshow, a key event in the aviation sector calendar where Airbus battles with rival US giant Boeing for orders.
In foreign exchange deals on Monday, the European single currency rose to $1.3625 from $1.3604 late on Friday in New York.
The British pound slipped to $1.7080 from $1.7101 on Friday. The euro edged up to 79.77p from 79.54p.
In commodity deals, gold fell to $1 301.52 per ounce from $1 335 on Friday.
