NEW YORK, Jan 3 — European shares hit all-time highs today, starting the year in an upbeat mood on hopes of steady economic recovery despite soaring cases of the Omicron coronavirus variant.

The pan-European STOXX 600 index was up 0.6 per cent at 490.76 points, as of 0821 GMT, surpassing its November record high of 490.58.

The benchmark recorded a 22.4 per cent jump in 2021, its second-best yearly performance since 2009, as elevated flow of economic stimulus, earnings growth and steady vaccine rollouts helped investors pour into stock markets.

Bourses in Germany, France, Italy and Spain were up between 0.6 per cent and 0.8 per cent, while London markets were closed.

Among sectors, automakers led morning gains with a 1.3 per cent rise after monthly sales reports from several global automakers.

German airlines Lufthansa jumped 5 per cent after Citi upgraded the stock rating to "buy” from "sell”. — Reuters