European shares rise on vaccine hopes, China data

But Brexit uncertainty keeps gains in check

Photograph: iStock

Photograph: iStock

 

European shares on Tuesday made a positive start to December, with optimism around a coronavirus vaccine strengthening the case for an economic recovery and priming stocks for an extension of November’s record-breaking gains.

After a day’s dip, when investors took some profits at the end of a spectacular month, the pan-European Stoxx 600 index was back in the black, up 0.3 per cent.

The index ended November with gains of nearly 14 per cent.

Further bolstering sentiment, a business survey echoed official numbers from a day earlier which showed robust growth in China’s factory activity. Similar data from Europe is due later in the day.

Uncertainties around a Brexit trade deal, however, kept gains in check. The European Union will launch contingency measures on Wednesday or Thursday, if it is unable to reach an agreement by then with Britain, a senior EU diplomat said on Monday. – Reuters