European stocks closed higher on Tuesday amid growing optimism about economies reopening and a potential coronavirus vaccine.

The pan-European Stoxx 600 closed up by 1% provisionally, with travel and leisure stocks surging 6.8% to lead gains. Most sectors and major bourses were in positive territory.

Investors are tracking developments in the race toward a vaccine for Covid-19. American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine.

Meanwhile, U.S. drugmaker Merck on Tuesday said it plans to work alongside nonprofit scientific research organization IAVI to develop a potential vaccine against the coronavirus.

Anglo-German travel operator Tui led the sector’s move higher to skyrocket 52%, buoyed by reports that Spain and Germany will ease travel restrictions.

Source: CNBC