LONDON — European stocks advanced on Thursday as investors continued to monitor the Covid crisis in the region and political developments in Germany.

The pan-European Stoxx 600 added 0.5% in early trade, with tech stocks climbing 1.1% to lead gains while telecoms shed 0.5%.

Investors are digesting the latest news out of Germany where a new coalition government deal between the Social Democrats, Greens and Free Democrats was announced on Wednesday.

The agreement will see Olaf Scholz, Germany’s former finance minister, become Germany’s new chancellor when Angela Merkel leaves the post in early December.

European investors continue to monitor the acute Covid crisis in the region this week amid rising infections that have prompted a handful of countries to introduce new Covid…