European shares rise on virus curb relaxation, vaccine cheer

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Nov 25 (Reuters) – European shares held steady near nine-month highs on Wednesday as a relaxation of coronavirus restrictions in the region and growing hopes that a vaccine would soon be ready kept sentiment afloat.

The pan-European STOXX 600 index edged up 0.3%, with banking stocks rising 1.6% after a report suggested that the European Central Bank could signal a lift on a ban on bank dividends next year.

Energy stocks continued to surge as crude prices extended a rally on hopes of a quick recovery in fuel demand.

Germany and the four nations of the United Kingdom unveiled plans to allow gatherings with limitations for Christmas, while France will start easing its lockdown this weekend after a sharp drop in new infections and hospitalizations.

London’s blue-chip FTSE 100 index rose 0.4%, while France’s benchmark CAC 40 index climbed 0.4% in early trade.

In company news, Virgin Money UK dropped 4.8% after the lender reported a slump in annual profit as it took a 501 million pound ($669.54 million) impairment charge against an expected surge in bad loans. ($1 = 0.7483 pounds) (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Subhranshu Sahu)