European shares extended the previous session’s sharp gains, despite the fall in German investor confidence.
The Eurostox 50 index rose one percent with investors anticipating corporate earnings out this week will provide signs of economic recovery. Banks were strong performers including Deutsche Bank, Barclays and Credit Suisse off the back of Goldman Sachs’ results. Energy and mining companies’ shares rose in response to higher oil and metal prices. Oil is up by around one percent as renewed confidence in the financial markets helps to reverse some of last week’s losses. BMW was boosted by its marketing manager saying the car market is about to turn a corner and so it is considering increasing production later this year.