Summary In New York, US stocks scored solid gains in opening trades.
LONDON (AFP) - European equities rebounded on Monday after a torrid week, with London boosted by Shire Pharmaceuticals backing of a takeover by US giant AbbVie, while the aviation sector flew into focus.
Investors were also eyeing US bank results and testimony this week from the head of the Federal Reserve about the state of the US economy and the likely timeline for raising interest rates.
In afternoon deals, London s FTSE 100 added 0.91 percent to 6,750.86 points, Frankfurt s DAX 30 gained 1.09 percent to 9,772.15 points and the Paris CAC 40 won 0.77 percent to 4,349.71.
Milan rose 0.40 percent and Madrid increased by 0.70 percent, while Lisbon stocks edged up by 0.66 percent as worries eased over a potential fallout from the plight of troubled lender Banco Espirito Santo (BES).
In New York, US stocks scored solid gains in opening trades after Citigroup s better-than-expected earnings and a rash of merger and acquisition activity.
In the first five minutes of trade, the Dow Jones Industrial Average jumped 0.60 percent to 17,045.53.
The broad-based S&P 500 advanced 0.51 percent to 1,977.69, while the tech-rich Nasdaq Composite Index rose 0.51 percent to 4,438.20.
European markets had fallen heavily last week as troubles at Portugal s largest listed lender, BES, raised fears of a possible default and a return to the dark days of the eurozone debt crisis.
But equities clawed back some ground on Friday, and recovered further on Monday as BES began operations under a new boss.
"After a pretty gruesome week... traders have taken the weekend to calm down and decided that the recent woes of bad economic data and the flaring up of the eurozone crisis isn t a sign of the long-awaited correction," said Capital Spreads dealer Jonathan Sudaria.
"Whether or not they are correct is something that will have to be seen."
- Citigroup in focus -
Banking giant Citigroup announced second-quarter earnings per share of $1.24, excluding a $7 billion legal settlement, well above the $1.05 projected by analysts.
"The catalysts for the bullish bias include a positive showing by foreign markets, better-than-expected earnings from Citigroup, and a spate of M&A activity," said Patrick O Hare of Briefing.com.
Back in Europe, London s top gainer was Sports Direct, whose share price surged 3.80 percent to 724.50 pence after the retailer unveiled plans to launch in Australia and New Zealand via an online partnership.
Shire Pharmaceuticals meanwhile recommended a revised $53.6-billion takeover from US giant AbbVie and said it was in "detailed discussions" over terms, ending its opposition to a deal.
