European stocks rose on Monday, joining a global rally as traders embraced a risk-on mood following encouraging news on the coronavirus vaccine front.
The pan-European Stoxx 600 closed up 0.6%, with travel and leisure stocks leading gains as they added 3.2%.
The mood was buoyed by news that Pfizer and BioNTech said their experimental Covid-19 vaccine was found to be more than 90% effective in preventing the virus.
The news pushed U.S. stocks to record highs on Monday, with the S&P 500 and the Nasdaq Composite closing up 1.2% and 1.8%, respectively.
The positive sentiment also spread to Europe, with all the major bourses in the region closing in positive territory.
The German DAX added 0.7%, while France’s CAC 40 gained 0.6%. The U.K.’s FTSE 100 rose 0.3%.
Investors in Europe also cheered news that the European Commission had proposed a new €750 billion ($886 billion) stimulus package to help the region’s economies recover from the coronavirus pandemic.
The package includes €500 billion in grants and €250 billion in loans. It will be funded by joint borrowing by all 27 EU member states.
The news was welcomed by investors, who had been looking for a strong response from the European Union to the economic crisis.
In individual stocks, French luxury goods maker LVMH jumped 4.4% after reporting better-than-expected third-quarter sales.
Meanwhile, British drugmaker AstraZeneca tumbled 4.3% after it said its experimental Covid-19 vaccine was 70% effective.
Overall, the mood was positive in Europe, with investors looking ahead to more good news on the vaccine front. With the global economy slowly starting to recover, investors appear to be betting on a brighter future.