Banks, energy stocks fuel rebound in European shares

European Central Bank Chief Christine Lagarde on Monday reaffirmed plans to raise interest rates twice this summer, while fighting widening spreads in the borrowing costs of different euro zone countries.

LONDON: European stocks rose strongly on Monday after a sharp selloff last week on recession worries, while gains in French shares were capped after President Emmanuel Macron lost an absolute majority in the country's parliamentary election.

The pan-European STOXX 600 index closed up 1.0%, with battered banking traveland energy stocks leading the gains, but volumes were crimped with U.S. markets closed for a holiday.