European shares open higher

European shares opened higher on Monday after strong economic data from China helped lift sentiment in the Asian session, but the dollar was in demand with investors cautious over the second wave of COVID- 19 and upcoming U. S. elections.

Equities fell sharply last week and the dollar surged to two- month highs as a resurgence of coronavirus infections in Europe and caution ahead of the U. S. presidential elections in November caused investors to re- evaluate their expectations for a global economic recovery.

On Monday, shares were firmly in the black, with the Stoxx 600 up 1.6%, London’s FTSE 100 up 1.5% and Germany’s DAX up 2.2% at 0724 GMT. After a tech- driven rally in Wall Street late on Friday, Asian shares gained, with Chinese shares boosted by data over the weekend showing China’s industrial firms grew for the fourth consecutive month in August.

The MSCI world equity index, which tracks shares in 49 countries, was up 0.5% at 0729 GMT, while MSCI’s main

European Index was up 1.8%.

The STOXX 600’ s banking stock index was up 4.2%, after hitting a fresh all- time low on Friday. Investors remain broadly cautious in light of rising new COVID- 19 infections in Europe, which pose the risk of further restrictions on activity. The World Health Organization said on Friday that it is worried about rising infections and hospitalisations ahead of the Northern Hemisphere’s flu season.

Oil prices fell as the increasing virus cases damaged hopes for a smooth recovery in fuel demand, with Brent on track for its first monthly fall in six months. Gold prices slipped, with spot gold down 0.2% at $1,856.64 per ounce by 0803 GMT.

President Donald Trump paid just $ 750 in federal income taxes in both 2016 and 2017, the New York Times reported on Sunday, citing taxreturn data. Trump dismissed the report as “fake news”.

Global manufacturing PMIs on Thursday and U. S. jobs data on Friday will also be in focus this week.