European shares headed towards a one-month high on Monday, with a rally in China's markets setting an upbeat tone as investors banked on the world's second biggest economy to lead a recovery from the coronavirus-induced slump.
China's blue-chip index jumped over 5per cent, as investors stocked up on cheap funding to invest in an economy that analysts predict will recover faster and better than other major countries battling new waves of infections. Optimism from Asia spilled over to European trading session, with HSBC , Banco Santander , BNP Paribas offering the biggest boost to the STOXX 600.UK homebuilders Persimmon , Taylor Wimpey and Barratt Developments were the top gainers, surging about 6per cent after reports that British Finance Minister Rishi Sunak planned to raise a property tax threshold, among other steps to reduce the economic toll of the health crisis.