European shares extend rally on vaccine cheer

European shares rose for a third straight session on Wednesday as optimism around a COVID-19 vaccine overshadowed concerns about the economic damage from a second wave of coronavirus infections across the continent.

The pan-European STOXX 600 gained 0.4%, building on a 5% rally this week, as investors bought into banks and travel-related stocks, both sectors that have widely underperformed this year. Technology stocks, which have tracked a surge in their U.S. counterparts since the coronavirus-driven crash in March, fell 0.5%.

Dutch bank ABN Amro dropped 3.4% even after it beat analysts' expectations, while German auto supplier Continental slid 1.6% as it warned of further restructuring expenses in the fourth quarter.