Europe open: Shares make strong start to week

European stocks made a solid start to the week, rebounding from last week’s poor performance as upbeat corporate news and hopes of a Brexit deal cheered investors look for bargains.

The pan-European Stoxx 600 rose 1.76%, with Germany’s DAX, France’s CAC 40 and the UK’s FTSE 100 all higher.

In corporate news shares in HSBC jumped more than 10% as China’s Ping An Insurance lifted its stake to 8% from 7.95%. The bank last week saw its stock fall to their lowest since 1995 on the back of report on alleged money laundering activities at major global banks.

Shares in Sonova, the world's biggest hearing aid maker, rose after the company lifted guidance and forecast a return to growth in the second half of the next fiscal year as business activities picked up faster than anticipated, supported by the ongoing recovery of the global market from the impact of the Covid-19 pandemic.

William Hill fell 12% to 272.5p as Caesars Entertainment on Monday confirmed it was in advanced talks with the UK bookmaker on a 272p-a-share offer valuing the company at £2.9bn.

Shares in William Hill soared on Friday when it revealed Caesars Entertainment and finance house Apollo each were talking about placing separate bids.

Diageo rallied after saying it made a good start to the current financial year as the drinks company's US business beat expectations. The maker of Johnny Walker whisky and Guinness beer said its outlook had improved since the end of June. Sales improved compared to the second half of last year but sales and margins will be lower than in the first half of last year.