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Europe Markets: European stocks rise on recovery hopes, as Spanish banks surge after BBVA deal

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. Read More...

A woman uses a smartphone in front of an ATM of the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) in Madrid on September 4, 2020.

AFP via Getty Images

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%.

Spain’s IBEX 35 IBEX, +1.51% surged over 2%. The French CAC 40 PX1, +0.70% rose 1.1%, and the German DAX DAX, +0.31% and U.K. FTSE 100 UKX, +0.44% also gained.

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.

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