European shares start week on firm footing, vaccine developments eyed

Shares of insurers, banks and automakers climbed more than 1% in early trading.

European shares rebounded on Monday after a Wall Street-led rout in technology stocks kept global sentiment subdued in the previous week, with investors keeping a close watch on COVID-19 vaccine developments.

Australia expects to receive its first batches of a potential COVID-19 vaccine in January after a deal was struck with CSL to manufacture two vaccines - one developed by rival AstraZeneca and Oxford University, and another in CSL's own labs with the University of Queensland. AstraZeneca rose 1.5%. The European healthcare sector index jumped 0.9%.

The STOXX 600 index was 0.8% higher by 0709 GMT, with Frankfurt shares leading gains after rising 1%. Shares of insurers, banks and automakers climbed more than 1% in early trading.