European markets rally as banks bounce; HSBC up 10%

European stocks bounced Monday morning, 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 1.5% in early trade, with banks surging 4.1% to lead gains as all sectors and major bourses entered positive territory.

The European blue-chip index had closed 3.7% 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. However, markets are receiving a boost Monday from signs that the Chinese economic recovery is gathering steam, with fiscal stimulus, pent-up demand and positive export data boosting sentiment and meaning European markets are set for a positive handover from Asia-Pacific.

The U.S. has seen a rise in daily cases ahead of Tuesday’s first presidential debate between President Donald Trump and Democratic challenger Joe Biden, with a Supreme Court fight also looming over Republican efforts to replace the late Justice Ruth Bader Ginsburg with conservative Amy Coney Barrett before the Nov. 3 election. European Central Bank President Christine Lagarde is scheduled to appear before the Committee on Economic and Monetary Affairs at 3:45 p.m. CEST.

European markets rally as banks bounce; HSBC up 10%, CNBC, Sep 28