(Reuters) - European shares hit their highest since February on Wednesday, on upbeat business activity data in the region, rising hopes of a Brexit trade deal and the possible roll-out of a COVID-19 vaccine in the continent before the new year.
Extending a rally to a third straight session, the pan-European STOXX 600 index rose 0.8%, joining a global rally after U.S. congressional leaders reported substantial progress in talks on another round of fiscal stimulus. [MKTS/GLOB]
Flash PMIs for December showed French business activity unexpectedly returned almost to growth, while in Germany the index rose to 52.5, topping a Reuters forecast for a decline to 50.4. This comes ahead of a stricter lockdown set into effect on Wednesday.
Meanwhile, hopes of Pfizer-BioNtech COVID-19 vaccine being available for inoculation before the end of the year gained ground after the European Union advanced the date to Dec. 21 to convene an expert panel to consider its rollout.
“Any positive vaccine update that suggests that it’s being rolled out sooner is more effective,” said Connor Campbell, a financial analyst at Spreadex.
After a report that the EU and Britain are close to a trade deal, Irish Prime Minister Micheál Martin said he was more optimistic than a week ago about a deal and is hoping for some clarity by the weekend.
The travel and leisure sector jumped 1% to hit its highest in almost two weeks. London’s FTSE 100 weathered a higher pound to rise 1.1% and break a three session losing run. [.L]
Gains in Europe were led by auto stocks for a second straight day, with German tire maker Continental surging 3.5% after its forecast for annual earnings before interest and taxes topped market expectations.
The German DAX stock index shot up 1.4% and was set for its best session in three months.
Investors will also be watching for the outcome of the U.S. Federal Reserve’s two-day meeting, with market looking for details on how the vaccine roll-out in the United States has changed the economic outlook. The decision is due after European markets hours, at 2 p.m. ET (1900 GMT).
Among individual stocks, Biotech firm Galapagos NV skid to the bottom of the STOXX 600 after its partner for experimental rheumatoid arthritis treatment, Gilead Sciences, decided not to pursue the U.S. approval for the drug.
Topping the index was a 23.3% jump in Altice Europe after Next Private increased its buyout offer price for the telecoms group by 30%.
Reporting by Susan Mathew in Bengaluru; Editing by Arun Koyyur
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European shares hit 10-month peak on upbeat business activity, vaccine hopes - Reuters
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