Investing.com - European stocks moved higher on Monday, as markets digested Friday’s dowbnbeat U.S. employment data and were supported by lower expectations for a U.S. rate hike before the end of the year.
During European morning trade, the EURO STOXX 50 edged up 0.12%, France’s CAC 40 added 0.12%, while Germany’s DAX 30 rose 0.29%.
Data on Friday showed that the U.S. economy added 151,000 jobs in August, disappointing expectations for an increase of 180,000.
The U.S. unemployment rate remained unchanged at 4.9% this month, confounding expectations for a downtick to 4.8%.
The report also showed that average hourly earnings rose 0.1% in August, below expectations for a 0.2% increase.
The disappointing data dampened expectations for a near-term rate hike, as Fed officials recently indicated that the pace of interest rate increases will be data-dependent.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) dropped 0.43% and 1.03%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) declined 0.33% and 0.61%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) retreated 0.64% and 1.02% respectively. Spanish banks overperformed however, with Banco Santander (MC:SAN) and BBVA (MC:BBVA) up 0.02% and 1.11%.
On the upside, Spain’s Telefonica (MC:TEF) rallied 1.18% after announcing plans to float for a partial listing of its Telxius masts unit. The company also said it will decide on a partial sale or initial public offering of its U.K. O2 unit in the next few weeks.
Altice NV (AS:ATCA) saw shares surge 3.17% after the Dutch telecoms group said it would exchange its shares for the outstanding 22.25% of shares of France's SFR that it does not already own, in order to simplify its ownership structure.
In London, commodity-heavy FTSE 100 inched up 0.02%, boosted by sharp gains in the mining sector.
Shares in Randgold Resources (LON:RRS) jumped 1.61% and BHP Billiton (LON:BLT) rallied 2.01%, while Fresnillo (LON:FRES) and Anglo American (LON:AAL) surged 2.22% and 2.28% respectively.
Meanwhile, financial stocks were broadly lower. HSBC Holdings (LON:HSBA) slipped 0.17% and Barclays (LON:BARC) lost 1.41%, while Lloyds Banking (LON:LLOY) plummeted 1.89% and the Royal Bank of Scotland (LON:RBS) sank 2.81%.
GKN (LON:GKN) was also on the downside, with shares down 1.62% amid reports the engineering company is facing pressure from top shareholders to step up its cost-cutting program ahead of a revaluation of its £2.1 billion pension deficit.
In the U.S., equity markets were to remain closed for the Labor Day holiday.