Stocks in Europe rallied on Monday as investors reacted to news that China will announce a 50 percent cut in car purchase taxes and German Chancellor Angela Merkel plans to step down as party chairman.
The pan-European Stoxx 600 was 1.2 percent higher at 357.17 with the majority of the sectors trading above the flatine. Auto stocks pushed higher, up by more than 4 percent. Volkswagen rose 5.6 percent and Daimler jumped 5.1 percent following a report from Bloomberg that China will halve its car purchase tax.
Banks were also among the top performers on the back of strong earnings. HSBC rose 5 percent after reporting a 28 percent increase in pre-tax profit in the third quarter of the year from a year ago. Banco Bpm also rose 5 percent on Monday after S&P Global kept Italy's investment grade though it changed the outlook for negative.
Source : CNBC