LONDON: European shares closed higher as China-exposed miners jumped on fresh stimulus for the world's second-largest economy, but concerns about a resurgence of coronavirus cases in the region kept gains in check.
Travel and leisure stocks fell 1.5%, continuing to slide after Britain added France and other countries to its quarantine list last week.
Adding to the sector's woes, Italy reimposed restrictions like shutting discos and clubs over the weekend and Germany declared nearly all of Spain, including the tourist island of Mallorca, a coronavirus risk region. British Airways-owner IAG fell 5.3% and InterContinental Hotels, which runs the Crowne Plaza brand, slipped 2.4% as Britain saw a fresh surge in Covid-19 cases.
EasyJet was down 4.6% on news it would close three of its bases in Britain, while Ryanair said it would reduce its flight capacity by a further 20% during September and October.
However, the pan-European STOXX 600 index ended 0.3% higher, with miners jumping 1.7% after fresh liquidity moves by the central bank in China, the world's top metals consumer.
Chipmakers also rose, while luxury stocks such as LVMH, Burberry and Kering climbed between 0.4% and 1.9% after Jefferies analysts said in a note that the strength of their businesses in China could help them to gain market share.
Pernod Ricard gained 3.3% after Barclays upgraded the French spirits maker to "overweight."
France's Sanofi gained 1.2% after it agreed to buy US company Principia Biopharma Inc for around $3.7 billion. Healthcare stocks provided the biggest boost to the STOXX 600.
Real estate firms took a hit as Europe's largest property firm Unibail-Rodamco-Westfield slid 4.9% after a media report said it was considering rights issue. The company said no decision had been made.
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