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* Commerzbank names Deutsche Bank executive as new CEO
* ArcelorMittal surges on Cleveland-Cliffs buyout of U.S.
assets
* China industrial profits grow for four straight months
(Updates to market close)
By Sruthi Shankar
Sept 28 (Reuters) - European stocks bounced back sharply on
Monday as investors snapped up beaten-down shares in the banking
sector that hit a record low last week and data gave signs of
pick-up in the Chinese economy.
The pan-European STOXX 600 index jumped 2.2%,
recording its biggest percentage gain since mid-June, after
last week's 3.6% drop.
The broader banks index surged 5.6% in its first
session of gain in eight days.
HSBC Holdings surged 8.9% after Chinese insurance
group Ping An , the biggest shareholder in
the British bank, boosted its stake to 8.00% from 7.95%.
Commerzbank rose 5.6% after it named a top manager
at rival Deutsche Bank, Manfred Knof, to lead the
bank. The stock move was, however, in line with the broader
sector.
Investors have shunned Europe's banking sector hit by a
cocktail of lower global borrowing costs, rising bad loans due
to the economic downturn and a dirty money scandal that made it
the worst performer this year with a 42% decline.
"There's a chance for tactical rebalancing, but not a
structural rally in banks," said Dhaval Joshi, European
investment strategist at BCA Research.
Investors have been wary about a second wave of coronavirus
infections hampering business activity in Europe, while
uncertainty about more U.S. fiscal stimulus and a Brexit trade
deal have all sparked bouts of volatility in financial markets
this month.
"With each of these issues remaining 'live' in the near
term, we expect markets to remain choppy for a bit longer,"
Morgan Stanley's equity strategist Graham Secker wrote in a
note.
However, the worst weekly selloff in three months drove
bargain hunters to step in, while data showed profits at China's
industrial firms grew for the fourth straight month in August
helped the trade-sensitive German index outperform.
Europe's auto and industrial sectors,
heavily reliant on Chinese demand, rose more than 3.5%.
ArcelorMittal SA gained 4.8% after Cleveland-Cliffs
Inc agreed to buy the U.S. assets of the steelmaker for
about $1.4 billion.
Sonova Holding AG, the world's biggest hearing aid
maker, surged 14.4% as it expects revenue to return to growth in
the next six months.
London-based spirits maker Diageo rose 6.1% after
saying it had made a strong start to its fiscal year 2021, with
its U.S. business performing ahead of expectations.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta and Angus MacSwan)
