European stocks advanced on Monday, in the first trading session of the new year.
The pan-European Stoxx 600 climbed 1.2% in early trade, with travel and leisure stocks bouncing 3.2% to lead gains as all sectors and major bourses entered positive territory.
European markets are bucking the trend set in Asia and the U.S. overnight; U.S. stock futures slipped on Sunday night while, shares in Asia-Pacific were mostly higher.
Mainland Chinese stocks rose by the afternoon after a private survey released Monday showed Chinese manufacturing activity expanding in December; China’s official manufacturing PMI released last Thursday showed the country’s factory activity expanding in December, albeit at a slower pace compared to November’s reading.
The coronavirus pandemic continues to be the main focus for European markets, now that the U.K.’s separation from the EU was completed on New Year’s Eve.
The U.K-EU post-Brexit trade relationship has now begun with onlookers waiting to see if there is any disruption to trade flows caused by new rules and paperwork for exporters.
The U.K. is set to start rolling out the coronavirus vaccine developed by AstraZeneca and the University of Oxford on Monday, marking another step in the global battle against the pandemic. But U.K. Prime Minister Boris Johnson said on Sunday that more restrictions were likely on the way as Covid-19 cases keep rising.
In terms of individual share price movement, Ladbrokes owner Entain soared 27% in early trade after the betting and gaming company confirmed a takeover offer from MGM Resorts International.
Anglo-German travel operator Tui also jumped 7% to lead a broad rally for the sector.