European stocks rebound on signs from bond market, vaccination-led optimism

European stocks bounced on Monday after sharp losses last week as a selloff in bond markets eased, while optimism over Covid-19 vaccination programme and US stimulus package further aided sentiment.

The pan-regional STOXX 600 index rose 1.6 per cent by 08:11 GMT following strong gains in Asian stocks despite weaker-than-expected manufacturing activity data out of China.

The European equities benchmark fell to a near one-month low on Friday as investors grew fearful that rising inflation due to another large U.S. stimulus package and the re-opening of the global economy could drive major central banks to tighten monetary policy.
 

The German