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European Markets Closed Higher as Banks Lead; Pan-European Stoxx 600, 1.6% Higher 

Economic News: On Monday, the European markets closed higher as investors focused on economic recovery possibilities and developments on potential coronavirus drugs.

They shrugged off fears over the further acceleration of the coronavirus pandemic.

The pan-European Stoxx 600 closed almost 1.6% higher. Banks then jumped 3.9% to lead gains in all sectors. Major bourses joined the positive territory.

On Friday, the European Commission said the EU gave Gilead’s antiviral drug, remdesivi, conditional approval. It’s the first authorized treatment for the virus in the region.

According to the Sunday Times newspaper, the UK is closing in on a £500 million ($624 million) supply deal with GlaxoSmithKline and Sanofi for 60 million doses of a potential vaccine.

On Saturday, the WHO said that more than 200,000 coronavirus cases were confirmed globally over 24 hours, a new record.

Americans are accounting for close to 130,000 new cases.

In the United States, Florida and Texas reported increased cases in new daily reports on Saturday. Confirmed cases also escalated in 39 states.

On Wall Street, shares rallied as investors looked beyond the continued rise of coronavirus cases. The Institute for Supply Management’s (ISM) data surprisingly showed an expansion in the US’s  services sector.

Its non-manufacturing index rose to 57.1 in June, topping the Dow Jones estimate of 50.1.

Meanwhile, on Friday, Martin Zielke, the CEO of Commerzbank, along with its chairman Stefan Schmittmann, were ousted following a shareholder revolt. The revolt was led partly by the US private equity firm Cerberus Capital Management searching for new leadership to take center stage this week.

 

Banks surge

The banking sector led a broad cyclical rally, with HSBC and Commerzbank climbing around 7%.

British housebuilders Vistry, Persimmon, and Barratt Developments also jumped by 7%, 6%, and 8%, respectively.

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