HSBC shares rally by 9.2pc in Europe

European stocks rallied Monday, looking to recover from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar.

The pan-European Stoxx 600 jumped by 2.2 percent by the afternoon with banks surging by 5 percent to lead gains, as all sectors and major bourses entered positive territory.

The European blue-chip index had closed 3.7 percent lower for the week on Friday after a choppy session, with global markets roiled by a resurgence in coronavirus cases on the continent and further afield.

HSBC shares surged by 9.2 percent by early afternoon after China’s Ping An Insurance announced that it would increase its stake in Europe’s largest lender.

The rally extended across the banking sector, with Deutsche Bank and Standard Chartered, Barclays and Credit Agricole all adding more than 5 percent.

Reuters reported Sunday, citing sources, that Luxembourg steel giant ArcelorMittal is in talks to merge its U.S. assets with Cleveland-Cliffs, the largest producer of iron ore pellets in the U.S. ArcelorMittal shares rallied by 10 percent.

Swiss hearing aid manufacturer Sonova climbed 12.8 percent to lead the Stoxx 600 after raising its guidance, while Danish rival Demant added 9 percent. French real estate trust Klepierre jumped by 11 percent.

At the bottom of the European benchmark, airplane engine manufacturer Rolls-Royce slid a further 5 percent.