(Reuters) – European shares hit a five-week high on Monday as optimism about a stable economic recovery in China and hopes of more U.S. fiscal stimulus helped offset concerns around surging COVID-19 cases across the continent.
The pan-European STOXX 600 <.STOXX> marked a third straight day of gains to end 0.7% higher, led by utilities <.SX6P>, technology <.SX8P> and autos <.SXAP> stocks.
The Trump administration on Sunday called on the U.S. Congress to pass a stripped-down coronavirus relief bill after talks stalled on a more comprehensive stimulus deal.
“Investors have not lost faith that further stimulus measures will follow and that an effective COVID-19 vaccine will soon be placed on the market,” said Milan Cutkovic, market analyst at Axi.
But a jump in domestic coronavirus cases has raised the spectre of fresh lockdowns and cast a shadow over a nascent economic rebound.
With Italy preparing for nationwide curbs, the European