(Reuters) – European shares rallied in the first trading session of the year as the Brexit trade deal and coronavirus vaccination drove across the continent strengthening expectations of a strong economic recovery.
The STOXX 600 pan-regional index gained 1.2% for touching new highs in February 2020, with mining and travel & leisure stock among the top winners.
London’s blue index rose 1.6% in the first day of trade with Britain outside the orbit of the European Union.
Although the hard trade agreement at the end of December agreed to establish rules for industries such as fishing and agriculture, it did not cover a much larger UK financial sector, leading to automatic access to the Irish financial markets. EU to end on 31 December.
Shares in UK banks such as Lloyds Banking Group, Barclays and Natwest traded slightly lower.
The German DAX gained 1.1% for trading below full-time highs, while the French CAC 40 rose 1.3%.
In company news, shares in the owner of Ladbrokes Entain Plc jumped 26.2% despite saying that a $ 11 billion bid offer from U.S. casino operator MGM Resorts significantly placed value on its business.
Reporting by Amal S in Bengaluru; Edited by Saumyadeb Chakrabarty