European Shares Advance On China Data

European stocks rose the most in two weeks on Monday as a late Wall Street rally on Friday coupled with strong industrial profits data from China helped offset rising tensions between Beijing and Washington.

Profits at China’s industrial firms grew for the fourth straight month in August, buoyed in part by a rebound in commodities prices and equipment manufacturing, official data showed on Sunday.

The pan-European Stoxx 600 was up 1.6 percent to 361.17 after hitting as high as 361.98 earlier in the day. The German DAX climbed 2.4 percent, France’s CAC 40 index gained 1.6 percent and the U.K.’s FTSE 100 was up 1.3 percent.

The British pound rallied against the euro and dollar on optimism that a Brexit trade deal could be struck.

Brexit trade talks are set to resume this week, with negotiators expected to discuss law enforcement and transport.

Banks led the surge, with Commerzbank, Deutsche Bank and Credit Agricole climbing 5-6 percent.

Automakers BMW, Daimler, Volkswagen, Renault and Peugeot gained 3-5 percent as the dollar held near a two-month peak against a basket of currencies ahead of a barrage of economic data due this week, and the U.S. presidential debate, scheduled to begin Tuesday.

ArcelorMittal SA jumped 10 percent gained after Cleveland-Cliffs Inc. entered into a definitive agreement to buy the company’s U.S. operations.

HSBC Holdings shares surged nearly 9 percent after the banking giant’s biggest shareholder raised its stake in the firm late last week.

Diageo jumped 6.3 percent. The world’s largest spirits maker said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions.

Betting and gaming company William Hill plunged 11 percent. U.S-based gaming-entertainment company Caesars Entertainment, Inc. (CZR) said it is in advanced discussions concerning a possible cash offer for the British company.

LPKF Laser & Electronics AG advanced 6.6 percent. The electronics manufacturing company said it has signed a framework agreement with a manufacturer of thin-film solar modules.

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