European shares hit a new 15-month high in early trade on Monday, with energy companies and miners among the top performers, after strong trading data from China boosted sentiment.
At 0922 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,072.88 points, and had touched a new 15-month high of 1,074.38.
The index is up more than 66 percent from its lifetime low hit in March, with several major economies having emerged from recession.
Growth in China’s exports and imports last month beat expectations, providing fresh evidence of the vigour of the economy.
A weaker dollar also helped boost the price of oil and metals.
Anglo American, BHP Billiton, Eurasian Natural Resources Corp., Fresnillo, Kazakhmys, Rio Tinto and Xstrata rose between 2 and 4.3 percent.
Energy companies gained as crude prices rose to a 15-month high of more than $83.60 a barrel.
ENI, BP, BG and StatoilHydro rose between 1.5 and 2.5 percent.
“Chinese exports and imports were strong, boosting expectations for global economic activity,” said Bernard McAlinden, investment strategist at NCB Stockbrokers.
“We’re still in a cyclical bull market, though we’re coming out of the rapid gains phase, and into a phase where it’s more discriminating.”
The heavyweight banking sector also helped to boost the index.
BNP Paribas, Banco Santander, Barclays, Deutsche Bank, Societe Generale, UBS and UniCredit rose between 0.7 and 1.4 percent.
Across Europe, Britain’s FTSE 100, France’s CAC40 and Germany’s DAX were up between 0.8 and 1 percent, respectively.
Heineken rises
Among individual shares, Heineken rose 3.5 percent after saying it would buy the beer business of Mexico’s FEMSA for $5.44bn, giving the Dutch brewer a top position in the Mexican and Brazilian markets.
Swiss Life was up six percent on media reports it may attract a bid from Germany’s Allianz. Both companies declined to comment.
Telefonica shares fell 2 percent, extending Friday’s decline, on the devaluation of Venezuela’s currency.
US stocks hit 15-month highs on Friday as investors took the view that the economy losing 85,000 jobs in December did not signify a break in the trend of economic recovery.
“Friday’s employment report in the United States was disappointing, but it also means the Fed is unlikely to raise interest rates soon,” said McAlinden.
Later on Monday, after the close of the US markets, aluminium producer Alcoa kicks off the fourth-quarter reporting season. Companies reporting later in the week include banking giant JP Morgan and chipmaker Intel.