German shares jumped 5.8% on Monday to lead a strong bounce in European shares as a slowdown in coronavirus deaths raised hopes that nationwide lockdowns may gradually be eased.
While all major sectors were well in the black, the travel and leisure sector .SXTP — worst hit by the lockdowns — rallied 8.2% breaking a three-day losing streak, while the German-focused auto sector .SXAP led gains with its near 9.5% jump.
Frankfurt’s DAX .GDAXI marked its best session in two weeks, while all other major European bourses closed up between 2.3% and 4.9%.
Wall Street stock indexes got a boost after President Donald Trump expressed hope that the health crisis was “leveling-off” in some of the hardest-hit U.S. states.
The pan-European benchmark STOXX 600 index also posted its biggest one-day gain in two weeks, ending 3.7% higher. It had logged its sixth weekly decline in seven last week as the health crisis stalled business activity and prompted firms to suspend dividends and share buybacks.