European Shares Surge on Optimism Over China Stimulus
(Reuters) - European shares climbed to six-week highs on Monday, led by miners, luxury goods makers and automakers after signs of fresh stimulus to support China's slowing economy.
The pan-European STOXX 600 index rose 0.3%, set to gain for an eighth consecutive session.
China-exposed miners and automakers climbed 1.6% and 0.7%, respectively, while luxury stocks LVMH and Richemont added more than 2% each.
The German DAX rose 0.2% to a record high.
China will implement more proactive fiscal policy and moderately loose monetary policy next year, and step up "unconventional" counter-cyclical adjustments, state media reported, citing a Politburo meeting.
Traders looked ahead to U.S. inflation data on Wednesday to gauge the pace of the Federal Reserve's potential rate cuts, while the European Central Bank is widely expected to lower rates by 25 basis points on Thursday.
Among individual stocks, Banco BPM rose 2%, while its suitor UniCredit dipped 0.9% after Credit Agricole said it poised to raise its stake in Banco BPM.
German meal-kit company Hellofresh fell 8.2%, with traders citing a report about a U.S. probe over allegations of child labour.
CompuGroup Medical soared about 30% after the German provider of healthcare software said it was in advanced talks to be acquired by CVC Capital Partners for a potential 22 euros ($23.24) per share.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)
