Europe open: Shares look for direction after Monday's gains

European shares were looking for direction on Tuesday after sharp gains in the previous session on the back of economic recovery hopes and the long-awaited US stimulus package.

The pan-European Stoxx 600 was up 0.2%, after Monday’s 1.3% rise. Regional bourses were mixed with the UK FTSE 100 outperforming, up 0.43% as the country’s health service met its first Covid vaccination target of elderly people.

Germany’s DAX and France’s CAC were flat as investors eyed a flash GDP reading for the Eurozone, tipped to show a fourth quarter contraction of 0.7%, and German economic sentiment numbers.

With the US market closed on Monday for the President’s Day holiday investors were also watching progress on President Joe Biden’s $1.9trn economic rescue plan.

In equity news Glencore jumped 2.3% after reinstating its dividend, while BHP Group rose 0.3% as the world’s largest listed miner posted its best first-half profit in seven years and declared a record interim dividend.

Travel company TUI and cinema chain Cineworld were high risers, likely boosted by hopes that vaccines will allow a return to more normal life by spring.