European stocks advanced on Monday in the first trading session of the new year.
The pan-European Stoxx 600 rose 1.2% in early trade, with travel and leisure stocks returning 3.2% to drive gains as all major sectors and stock markets entered positive territory.
European markets are facing the trend set in Asia and the US overnight; US futures fell on Sunday night, while Asia-Pacific equities were largely higher.
Shares in mainland China rose in the afternoon after a private poll released on Monday showed that Chinese production activity is expanding in December; China’s official manufacturing PMI, released last Thursday, showed that the country’s plant activity is expanding in December, albeit at a slower pace than in November.
The coronavirus pandemic continues to be the main target for European markets, now that the separation of Great Britain from the EU was completed on New Year’s Eve.
The UK-EU post-Brexit trade relationship has now begun, with spectators waiting to see if there is any disruption to trade flows caused by the new rules and documents for exporters.