European stocks extend gains, German DAX hits fresh record

European stocks rose in early trading on Tuesday, extending gains for the third straight day, and hit a 13-month high, led by the German DAX, which hit a new record high, and shrugged off the latest developments in the US bond market.

The Stoxx Europe 600 index rose 0.4% as of 11:33 GMT, and hit the highest since February 2020 at 430.4 points, after closing higher by 0.2% following Wall Street's strong rally.

The banking sector saw the largest gains in Europe today, with a jump of more than 2%, as most of the sector’s stocks rebounded.

The Dow Jones futures fell 0.2%, after closing higher by 0.3% yesterday at Wall Street, and hit a new record high of 33,259 points, in the third straight daily gain.

The market sentiment improved as concerns over US stocks eased following Dow Jones' jump to its all-time high thanks to expectations that the US President Joe Biden's plan to revitalize America's infrastructure could boost economic growth in the country.

The US 10-year Treasury bond yields rose 3.5% today, extending gains for the fourth straight day, and hit 14-month peak at 1.774%.

Back to Europe, the Euro Stoxx 50 index rose 0.5% and hit the highest since 2008 at 3,910.20 points, France's CAC 40 rose 0.45%, and the UK's FTSE 100 rose 0.2%, while Germany's DAX index rose 0.7% and hit a new record high of 14,926.5 points.