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London - European equities extended a rebound into a third day as optimism over prospects for global growth and stimulus in Japan lifted investor sentiment.
The Stoxx Europe 600 Index added 0.8% at 8:06 a.m. in London, with banks and commodity producers leading gains. The benchmark rallied on Friday, trimming a weekly drop, after US payrolls rose by the most since October and Italian banks recovered losses.
In Japan, the ruling party scored a victory in Sunday’s upper house election, turning the focus to Prime Minister Shinzo Abe’s plans for fiscal stimulus.
Equities are rebounding after sliding early last week amid concern over the strength of the Italian banking system and repercussions of the UK’s vote to leave the European Union.
Lenders in the Stoxx 600 sank on July 6 to their lowest levels since the peak of the region’s crisis in 2011, insurers fell to an almost three-year low, and property-related stocks in Britain tumbled as several funds suspended withdrawals.
While a weaker pound has helped the UK’s FTSE 100 Index recover its post-Brexit declines and approach a bull market, the Stoxx 600 is still 9.8% down for the year.
Among stocks active on corporate news, LafargeHolcim rose 2.2% after agreeing to sell an Indian building-materials business to Nirma for an enterprise value of about $1.4bn.
Cerillion jumped 7.9% after the software provider said it won a contract worth an initial £2.1m from a telecommunications company.
