By Steve Goldstein
European stocks climbed Monday, helped by data showing the effectiveness of another vaccine and signs the Asian economic recovery is accelerating.
Up 5% last week after early data from U.S. drugmaker Pfizer /zigman2/quotes/202877789/composite PFE +1.00% and German partner BioNTech’s /zigman2/quotes/214419716/composite BNTX +9.35% coronavirus vaccine showed it was 90% effective, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.89% surged 1.4%, after Moderna /zigman2/quotes/205619834/composite MRNA +1.65% said its coronavirus vaccine candidate was more than 94% effective.
Futures on the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 +0.79% rose 513 points.
The French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.45% , German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.34% and U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.76% extended gains after the Moderna news. Hard-hit European companies such as cruise operator Carnival /zigman2/quotes/210414141/delayed UK:CCL +2.34% and International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +3.00% jumped.
The recovery in the world’s number-two economy seems to be accelerating, with China’s industrial production jumping 6.9% in the 12 months to October and retail sales rising 4.3%. Japan’s third-quarter gross domestic product rose a stronger-than-forecast 5% in the third quarter. China and Japan also were among the signatories to the Regional Comprehensive Economic Partnership, a free-trade pact covering 15 key Asian countries apart from India.
U.S. hospitalizations for COVID-19 reached a record high on Sunday, according to data from the COVID-19 project, as various regional restrictions begin to kick in. U.K. Prime Minister Boris Johnson, who has suffered from COVID-19 before, is now self-isolating after meeting a member of parliament who contracted the virus, though he is not reported to be showing any symptoms. News that the Biden administration didn’t endorse a national lockdown proved supportive for stocks.
It is also a critical week for negotiations between the U.K. and European Union on a trade deal, as current terms expire at the end of the year.
BBVA /zigman2/quotes/209653399/delayed ES:BBVA +0.31% /zigman2/quotes/204078760/composite BBVA +1.20% soared 19% after agreeing to sell its U.S. operations to PNC Financial Services /zigman2/quotes/203416310/composite PNC +0.37% for $11.6 billion. BBVA said PNC paid more than what any of the analysts covering the Spanish bank valued its U.S. operations.
The news sent Banco Sabadell /zigman2/quotes/206753237/delayed ES:SAB +1.80% up 20%, as it helped to rekindle previous speculation BBVA could buy it. Banco Santander /zigman2/quotes/205677933/delayed ES:SAN -0.08% /zigman2/quotes/202859081/composite SAN +0.77% rose 5%.
Vodafone Group /zigman2/quotes/202484985/delayed UK:VOD -0.14% /zigman2/quotes/202862751/composite VOD +0.35% rose 3%, as the mobile-phone operator reported a 1.9% decline in its half-year adjusted earnings before interest, depreciation and amortization, on a 2.3% drop in revenue. Vodafone maintained its dividend and reiterated its free cash flow and Ebitda guidance.
Unibail-Rodamco-Westfield /zigman2/quotes/207218984/delayed NL:URW +0.98% shares jumped 17%, after replacing its chairman with a director who was critical of the commercial-real-estate company’s strategic plans. A capital-raising plan was rejected by shareholders last week.