European stocks gain, spurred on by cyclical rally

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 0.8% by 0720 GMT, with banks, automakers and oil & gas rising between 1.2% and 2.0%.

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 0.8% by 0720 GMT, with banks, automakers and oil & gas rising between 1.2% and 2.0%. Miners gained 2.0% 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 U.S. 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 35.8% to the top of STOXX 600 after Swedish industrial group Alfa Laval announced a recommended 1.73 billion euro ($1.96 billion) cash bid.

Nordic bank DNB rose 9.0% and Nordic Semiconductor gained 7.7% following better-than-expected earnings reports.