Investing.com - European stocks remained higher on Monday, as hopes for fresh action by the European Central Bank continued to support sentiment, following the release of disappointing economic data from the euro zone.
During European afternoon trade, the EURO STOXX 50 rose 0.28%, France’s CAC 40 climbed 0.53%, while Germany’s DAX 30 advanced 0.38%.
Stocks found support after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, although he stopped short of indicating that a fresh round of stimulus is imminent.
Markets were awaiting a speech by ECB President Draghi later in the day, amid speculation that the central bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
Earlier in the day, revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Markit said the bloc’s manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44, but remained well below the 50 mark that separates growth from contraction.
Financial stocks remained mixed as shares in France’s BNP Paribas climbed 0.93% and Societe Generale edged down 0.10%, while German lenders Deutsche Bank and Commerzbank declined 0.28% and 0.08% respectively.
Meanwhile, Finnish phone maker Nokia saw shares surge 5.78% as it was expected to unveil this week a new device produced in collaboration with Microsoft.
On the downside, German hospital operator Rhoen-Klinikum dove 22.24% after Fresenius decided against reviving a bid for the rival company.
In London, commodity-heavy FTSE 100 climbed 0.67%, boosted by sharp gains in mining stocks.
BHP Billiton and Rio Tinto surged 2.06% and 1.80% respectively, while Fresnillo and Vedanta Rsources saw shares rally 4.77% and 3.72%.
Copper producers Xstrata and Kazakhmys also added to gains, as shares rose 0.27% and 2.45% respectively.
Separately, Bloomberg reported earlier that Glencore International, whose shares were down 0.38% in early European trade, is continuing to stick to the terms of a USD33 billion bid for Xstrata, resisting mounting pressure from shareholders to sweeten the offer four days before investors vote.
Elsewhere, financial stocks were broadly higher. Shares in the Royal Bank of Scotland added 0.15% and HSBC Holdings climbed 0.56%, while Barclays and Lloyds Banking advanced 0.98% and 1.02% respectively.
Meanwhile, ARM Holdings, whose chip designs power Apple’s iPhone, tumbled 2.44% after Deutsche Bank lowered its recommendation to sell from hold, saying the company is likely to face increased competition.
In the U.S., equity markets were to remain closed for the Labor Day holiday.
Also Monday, concerns over China’s outlook for growth re-emerged, after data earlier showed that manufacturing activity in the world’s second largest economy contracted in August.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.
During European afternoon trade, the EURO STOXX 50 rose 0.28%, France’s CAC 40 climbed 0.53%, while Germany’s DAX 30 advanced 0.38%.
Stocks found support after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, although he stopped short of indicating that a fresh round of stimulus is imminent.
Markets were awaiting a speech by ECB President Draghi later in the day, amid speculation that the central bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
Earlier in the day, revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Markit said the bloc’s manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44, but remained well below the 50 mark that separates growth from contraction.
Financial stocks remained mixed as shares in France’s BNP Paribas climbed 0.93% and Societe Generale edged down 0.10%, while German lenders Deutsche Bank and Commerzbank declined 0.28% and 0.08% respectively.
Meanwhile, Finnish phone maker Nokia saw shares surge 5.78% as it was expected to unveil this week a new device produced in collaboration with Microsoft.
On the downside, German hospital operator Rhoen-Klinikum dove 22.24% after Fresenius decided against reviving a bid for the rival company.
In London, commodity-heavy FTSE 100 climbed 0.67%, boosted by sharp gains in mining stocks.
BHP Billiton and Rio Tinto surged 2.06% and 1.80% respectively, while Fresnillo and Vedanta Rsources saw shares rally 4.77% and 3.72%.
Copper producers Xstrata and Kazakhmys also added to gains, as shares rose 0.27% and 2.45% respectively.
Separately, Bloomberg reported earlier that Glencore International, whose shares were down 0.38% in early European trade, is continuing to stick to the terms of a USD33 billion bid for Xstrata, resisting mounting pressure from shareholders to sweeten the offer four days before investors vote.
Elsewhere, financial stocks were broadly higher. Shares in the Royal Bank of Scotland added 0.15% and HSBC Holdings climbed 0.56%, while Barclays and Lloyds Banking advanced 0.98% and 1.02% respectively.
Meanwhile, ARM Holdings, whose chip designs power Apple’s iPhone, tumbled 2.44% after Deutsche Bank lowered its recommendation to sell from hold, saying the company is likely to face increased competition.
In the U.S., equity markets were to remain closed for the Labor Day holiday.
Also Monday, concerns over China’s outlook for growth re-emerged, after data earlier showed that manufacturing activity in the world’s second largest economy contracted in August.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.