Investing.com - European stocks extended gains on Monday, shrugging off weak euro zone data and uncertainty over freshly announced steps to deal with the region’s financial troubles, as investors hoped for more easing measures by the European Central Bank this week.
During European afternoon trade, the EURO STOXX 50 rallied 1.54%, France’s CAC 40 jumped 1.59%, while Germany’s DAX 30 surged 1.40%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Credit Agricole led gains, with shares soaring 7.55%, amid report the French lender is in talks with at least one bank to sell all or part of its struggling Greek unit Emporiki Bank.
Other European banks weren’t far behind as BNP Paribas and Societe Generale climbed 4.22% and 3.31% respectively, while Germany’s Deutsche Bank and Commerzbank advanced 2% and 2.10%.
On the downside, German maker of industrial gas, Linde plunged 3.18% after agreeing to acquire Lincare Holdings Inc. for about USD3.8 billion to add U.S. oxygen and respiratory therapy services delivered to the home.
In London, FTSE 100 climbed 0.84%, boosted by strong gains in financial stocks and after data showed that manufacturing activity in the U.K. improved in June.
Shares in Barclays rallied 4.07% and Lloyds Banking jumped 1.64%, while the Royal Bank of Scotland and HSBC Holdings advanced 1.70% and 1.26% respectively.
Barclays Chairman Marcus Agius resigned earlier, after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Meanwhile, energy stocks remained broadly higher, as shares in Essar Energy soared 3.28% and BP jumped 1.96%, while Anglo America rallied 1.65%.
Mining giants Rio Tinto and BHP Billiton also climbed 2.31% and 1.98%, while Xstrata rose 0.58%, erasing earlier losses, amid reports Glencore could be forced to pay almost GBP300m in break fees if it decides to walk away from its planned merger with the copper producer.
Elsewhere, Invensys surged 2.16% as China South Locomotive was said to be in the early stages of planning a GBP2 billion takeover bid for the company, according to the Sunday Times.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.23% increase, while the Nasdaq 100 futures indicated a 0.13% gain.
Also Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the day, the U.S. Institute for Supply Management was to release a report on activity in the manufacturing sector.
During European afternoon trade, the EURO STOXX 50 rallied 1.54%, France’s CAC 40 jumped 1.59%, while Germany’s DAX 30 surged 1.40%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Credit Agricole led gains, with shares soaring 7.55%, amid report the French lender is in talks with at least one bank to sell all or part of its struggling Greek unit Emporiki Bank.
Other European banks weren’t far behind as BNP Paribas and Societe Generale climbed 4.22% and 3.31% respectively, while Germany’s Deutsche Bank and Commerzbank advanced 2% and 2.10%.
On the downside, German maker of industrial gas, Linde plunged 3.18% after agreeing to acquire Lincare Holdings Inc. for about USD3.8 billion to add U.S. oxygen and respiratory therapy services delivered to the home.
In London, FTSE 100 climbed 0.84%, boosted by strong gains in financial stocks and after data showed that manufacturing activity in the U.K. improved in June.
Shares in Barclays rallied 4.07% and Lloyds Banking jumped 1.64%, while the Royal Bank of Scotland and HSBC Holdings advanced 1.70% and 1.26% respectively.
Barclays Chairman Marcus Agius resigned earlier, after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Meanwhile, energy stocks remained broadly higher, as shares in Essar Energy soared 3.28% and BP jumped 1.96%, while Anglo America rallied 1.65%.
Mining giants Rio Tinto and BHP Billiton also climbed 2.31% and 1.98%, while Xstrata rose 0.58%, erasing earlier losses, amid reports Glencore could be forced to pay almost GBP300m in break fees if it decides to walk away from its planned merger with the copper producer.
Elsewhere, Invensys surged 2.16% as China South Locomotive was said to be in the early stages of planning a GBP2 billion takeover bid for the company, according to the Sunday Times.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.23% increase, while the Nasdaq 100 futures indicated a 0.13% gain.
Also Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the day, the U.S. Institute for Supply Management was to release a report on activity in the manufacturing sector.