FILE Photograph: The German share value index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 29, 2020. REUTERS/Workers

(Reuters) – European shares rallied in the initial trading session of the 12 months as a landmark Brexit trade offer and coronavirus vaccine drives across the continent bolstered expectations of a robust financial rebound.

The pan-regional STOXX 600 index gained 1.2{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} to contact refreshing February 2020 highs, with mining and vacation & leisure shares among the best gainers.

London’s blue-chip index rose 1.6{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} in its initial working day of trading with Britain outdoors the European Union’s orbit.

Whilst the challenging-fought trade offer agreed late December set principles for industries such as fishing and agriculture, it did not include Britain’s considerably much larger finance sector, which means automatic access to the EU’s fiscal markets came to an finish on Dec. 31.

Shares in Uk financial institutions such as Lloyds Banking Group, Barclays and Natwest traded marginally decreased.

Germany’s DAX obtained 1.1{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} to trade down below all-time highs, when France’s CAC 40 was up 1.3{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be}.

In firm news, shares in Ladbrokes owner Entain Plc jumped 26.2{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} even with indicating an $11 billion bid proposal from U.S. casino operator MGM Resorts substantially undervalued its small business.

Reporting by Amal S in Bengaluru Editing by Saumyadeb Chakrabarty