ROME: European stocks rose Monday, recovering from one of the worst weeks in months, supported by robust manufacturing data across the region.
Having opened the session lower, Germany’s DAX 30 and France’s CAC 40 were trading 0.9 per cent and 0.4 per cent higher by midmorning, helping the Stoxx Europe 600 to a 0.5 per cent gain, after figures showed that the eurozone’s manufacturing sector expanded again in April.
Data firm Markit, which surveys more than 3,000 manufacturers across the eurozone, said that its purchasing managers index was at 52.0 for the month, down from 52.2 in March, but still higher than the 51.9 figure previously estimated by Markit.
A reading below 50.0 indicates business activity is declining, while a reading above that level implies it is increasing.
Strong figures for individual countries buoyed stocks indexes in Southern and Northern Europe too, but trading volumes were capped by a market holiday in the UK The main indexes in Spain, Italy and Portugal rose 0.6 per cent, 0.7 per cent and 1.5 per cent, while Norway’s main index added 0.9 per cent and Sweden’s 0.6 per cent.
Last week, most major indexes in Europe fell more than 4 per cent as investors abruptly distanced themselves from some of the most successful trades so far this year, fearful that the rally in stocks, bonds and the US dollar may have become dangerously overdone.
