European equities rally as China avoids meltdown

European stock markets pushed sharply higher on Monday, building on Asian gains after Shanghai avoided a sharp selloff on its return from holidays and banks were buoyed by HSBC's decision to stay in London. London closed 2 percent higher, with Frankfurt and Paris up around 3 percent. Shanghai fell 0.6 percent -- but losses were modest considering traders were playing catch-up with last week's bloodbath across world stock markets.