Europe close: Stocks buoyed by gains on Wall Street
European stocks tracked gains on Wall Street after the previous week's drubbing, with UK supermarket chain Sainsbury's surging on takeover speculation.
"US indices continue to lead the way higher, as they did at the end of last week, emboldened by the trimming of hawk Robert Kaplan’s views on tapering and the conduct of US monetary policy," said IG chief market analyst Chris Beauchamp.
"Another strong earnings season has provided the foundation for gains throughout the year, and has meant that even small dips like last week are seen as buying opportunities."
The pan-European Stoxx 600 index was up 0.66% to 471.88, led by oil and gas, and retail names, with the UK's FTSE 100 up 0.30% to 7,109.02.
Higher alongside, Spain's Ibex 35 was advancing 0.72% to 8,979.10.
IHS Markit’s Flash Composite Purchasing Managers’ index, fell to 59.5 in August from 60.2 last month (consensus: 59.7).
A mark above 50 separates growth from contraction
In equity news, Sainsbury's surged 15% following a report that US private equity firm Apollo is considering a bid for the UK supermarket chain. According to The Sunday Times, Apollo is circling Sainsbury’s with a view to possibly launching bids of more than £7bn, after scouring the industry for takeover targets.
Germany’s BioNTech jumped 9% after the US Food and Drug Administration granted full approval to its partner Pfizer’s Covid-19 vaccine.
Luxury stocks including LVMH, Kering and Moncler rallied after last week's sell off on China’s wealth redistribution plans.
Switzerland-based Cembra Money Bank plunged 31% to the bottom of the Stoxx 600 after it terminated its credit card partnership with Swiss retailer Migros.
Education publisher Pearson was boosted by an upgrade to ‘overweight’ from ‘neutral’ at JPMorgan.