European equities advanced on Monday, in the first trading day of the new year.
The pan-European Stoxx 600 rose 1.2% in the first trades, with travel and leisure stocks jumping 3.2% to lead the gains, as all sectors and major exchanges entered positive territory.
European markets are countering the trend established in Asia and the USA overnight; US stock futures fell on Sunday night, while Asian Pacific stocks were up.
Mainland China stocks rose in the afternoon, after a private survey released on Monday showed China’s manufacturing activity booming in December; China’s official manufacturing PMI released last Thursday showed the country’s expanding manufacturing activity in December, albeit at a slower pace compared to November’s reading.
The coronavirus pandemic remains the main focus of European markets, now that the separation of the UK from the EU has been completed on New Year’s Eve.
The post-Brexit trade relationship between the UK and the EU has now started with onlookers waiting to see if there are any disruptions to trade flows caused by new rules and paperwork for exporters.