(MENAFN- AFP) European equities rebounded on Monday after a torrid week, with London boosted by Shire Pharmaceuticals' backing of a takeover by US giant AbbVie, while the aviation sector flew into focus as well.
Investors were also eyeing US bank results and testimony this week from the head of the Federal Reserve about the state of the US economy and the likely timeline for raising interest rates.
In late morning deals, London's FTSE 100 added 0.67 percent to 6,734.73 points, Frankfurt's DAX 30 gained 0.68 percent to 9,730.72 points and the Paris CAC 40 won 0.46 percent to 4,336.45.
Milan rose 0.91 percent and Madrid increased by 0.77 percent, while Lisbon stocks rallied 1.02 percent as worries eased over the plight of troubled lender Banco Espirito Santo (BES).
Europeans markets had fallen heavily last week as troubles at Portugal's largest listed lender, BES, raised fears of a possible default and a return to the dark days of the eurozone debt crisis.
However, equities clawed back some ground on Friday, and recovered further on Monday as BES began the formation of a new management team.
"After a pretty gruesome week which saw the major European indices touch levels not seen for a couple of months, traders have taken the weekend to calm down and decided that the recent woes of bad economic data and the flaring up of the eurozone crisis isn't a sign of the long-awaited correction," said Capital Spreads dealer Jonathan Sudaria.
"Whether or not they are correct is some thing that will have to be seen."
- Citigroup results eyed -
Investors also awaited results from Citigroup, which will kick off a busy week for US bank results later in the day.
"Economic data is thin on the ground today, although Citigroup is slated to release its Q2 earnings ahead of the opening bell," said Valutrades analyst Joao Monteiro.
"With the bank still grappling with restructuring capital adequacy plans, any reported progress here could influence the share price."
Back in Europe, London's top gainer was Sports Direct, whose share price surged 4.30 percent to 728 pence after the retailer unveiled plans to launch in Australia and New Zealand via an online partnership.
Shire Pharmaceuticals meanwhile recommended a revised $53.6-billion takeover from US giant AbbVie and said it was in "detailed discussions" over terms, ending its opposition to a deal.
AbbVie's latest cash-and-stock proposal for Shire was worth £53.20 per share, valuing it at the equivalent of £31.35 billion or 39.5 billion euros, Shire said in a statement.
In reaction, Shire's share price jumped 2.63 percent to £49.98 pence - but held underneath the offer price.
"Shire Pharmaceuticals are trading higher but cautiously below the proposed offer price suggesting investor nerves that the deal may not go ahead despite board approval," noted Mike McCudden, head of derivatives at stockbroker Interactive Investor.
- Airbus shares fly higher -
In Paris, Airbus Group shares won 1.36 percent to 47.75 euros after the company launched the eagerly-awaited upgrade to its long-haul A330 passenger jet - the A330neo - which boasts more fuel-efficient engines.
The European planemaker also announced that US-based Air Lease Corporation has made a firm order for 60 single-aisle Airbus A321neo planes worth $7.23 billion at list prices.
The news was unveiled on the first day of the Farnborough airshow, a key biennial event in the aviation sector calendar held southwest of London where Airbus battles with rival US giant Boeing for orders.
In foreign exchange deals on Monday, the European single currency rose to $1.3625 from $1.3604 late on Friday in New York.
The British pound firmed to $1.7125 from $1.7101 on Friday. The euro also rose to 79.56 pence from 79.54 pence.
In commodity deals, gold dipped to $1,321.43 per ounce from $1,335 on Friday.
Asian shares rose Monday as traders awaited a flurry of key economic data this week including Chinese growth figures that will shed light on the strength of the world's second largest economy.
Sydney stocks rose 0.45 percent, Tokyo stocks gained 0.88 percent and Shanghai climbed 0.96 in value. <
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