European stocks rose Monday, helped by data showing the Asian economic recovery is accelerating even as the U.S. and Europe struggle to get to grips with COVID-19. Spanish banks surged after BBVA reached a pact to sell its U.S. division.
Up 5% last week after early data from Pfizer’s coronavirus vaccine showed it was 90% effective, the Stoxx Europe 600 SXXP, +0.45% added 0.8%.
Futures on the Dow Jones Industrial Average YM00, +0.81% rose 282 points.
The recovery in the world’s number-two economy seems to be accelerating, with China’s industrial production jumping 6.9% in the 12 months to October and retail sales rising 4.3%. Japan’s third-quarter GDP rose a stronger-than-forecast 5% in the third quarter. China and Japan also were among the signatories to the Regional Comprehensive Economic Partnership, a free-trade pact cover 15 key Asian countries apart from India.
U.S. hospitalizations for COVID-19 reached a record high on Sunday, according to data from the COVID-19 project, as various regional restrictions begin to kick in. U.K. Prime Minister Boris Johnson, who has suffered from COVID-19, is self-isolating after meeting a member of parliament who contracted the virus, though he is not reported to be showing any symptoms. Germany is reportedly weighing tougher measures to combat COVID-19, while cases are surging in Italy.
It’s also a critical week for negotiations between the U.K. and European Union on a trade deal, as current terms expire at the end of the year.
BBVA BBVA, +13.42% BBVA, +4.76% soared 17% after agreeing to sell its U.S. operations to PNC Financial Services PNC, +1.47% for $11.6 billion. The news sent Banco Sabadell SAB, +9.99% up 12%, as it helped to rekindle previous speculation BBVA could buy it. Banco Santander SAN, +3.45% SAN, +4.70% rose 5%.
Vodafone Group VOD, +2.52% VOD, +4.06% rose 3% as the mobile phone operator reported a 1.9% decline in its half-year adjusted earnings before interest, depreciation and amortization, on a 2.3% drop in revenue. Vodafone maintained its dividend and reiterated its free cash flow and EBITDA guidance.