European stocks ended higher on Monday, starting the new year with a broad-based rally led by construction and industrial shares as softer-than-expected factory inflation data from China eased tightening concerns, according to Reuters. Automakers also made lofty gains, led by Germany's Porsche. It surged 15 percent after a U.S. federal judge dismissed a lawsuit by hedge fund groups accusing the company of cornering the market in shares of Volkswagen AG. The FTSEurofirst 300 index of top European shares unofficially closed 0.9 percent higher at 1,131.59 points, following a 7.3 percent gain in 2010. Trading was muted on Monday, however, as UK markets remained closed for a holiday. U.S. macro data also lifted the mood on Monday, with factory and housing figures pointing to a strengthening recovery. "Despite the fact that the macro landscape is relatively positive, the stock rally remains fragile and dominated by one theme -- the exposure to emerging growth," said Jacques Henry, analyst at Louis Capital Markets in Paris. Siemens gained 1.3 percent, Lafarge rose 2.2 percent and BMW added 4.3 percent.
