European stocks rose 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 Pfizer’s coronavirus vaccine showed it was 90% effective, the Stoxx Europe 600
SXXP,
added 0.8%.
Spain’s IBEX 35
IBEX,
surged over 2%. The French CAC 40
PX1,
rose 1.1%, and the German DAX
DAX,
and U.K. FTSE 100
UKX,
also gained.
Futures on the Dow Jones Industrial Average
YM00,
rose 282 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 GDP 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 cover 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, is self-isolating after meeting a member of parliament who contracted the virus, though he is not reported to be showing any symptoms. Germany is reportedly weighing tougher measures to combat COVID-19, while cases are surging in Italy.
It’s 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.
BBVA
BBVA,
BBVA,
soared 17% after agreeing to sell its U.S. operations to PNC Financial Services
PNC,
for $11.6 billion. The news sent Banco Sabadell
SAB,
up 12%, as it helped to rekindle previous speculation BBVA could buy it. Banco Santander
SAN,
SAN,
rose 5%.
Vodafone Group
VOD,
VOD,
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.