European stocks gain, spurred on by cyclical rally

(Reuters) – European shares rose on Monday, with cyclical sectors leading gains as investors hoped the upcoming earnings season will feed into signs of an economic recovery from the coronavirus-induced downturn.

The pan-European STOXX <.STOXX> index rose 0.8% by 0720 GMT, with banks <.SX7P>, automakers <.SXAP> and oil & gas <.SXEP> rising between 1.2% and 2.0%.

Miners <.SXPP> gained 2.0% on optimism over China’s recovery and surging metal prices. [.SS] [MET/L]

Global investor sentiment also brightened at the start of a week that kicks off the U.S. and European quarterly earnings season and includes a summit over the European Union recovery fund and a European Central Bank policy meeting.

Finnish valves maker Neles jumped 35.8% to the top of STOXX 600 after Swedish industrial group Alfa Laval announced a recommended 1.73 billion euro ($1.96 billion) cash bid.

Nordic bank DNB rose 9.0% and Nordic Semiconductor gained 7.7% following better-than-expected earnings reports.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)