European Shares Extend Gains On Trade Deal Hopes, China Data

European stocks rose broadly on Monday to extend gains from the previous session, with hopes for a U.S.-China trade deal as well as positive manufacturing data from China supporting sentiment.

Official data showed that China’s factory activity in March unexpectedly grew for the first time in fourth months.

The Caixin/Markit PMI also showed the manufacturing sector in the world’s second biggest economy returning to growth.

The pound was treading water against the euro and dollar as regional data proved to be a mixed bag and investors braced for another parliament vote on a series of Brexit options amid indications the prime minister may be willing to call a general election.

The pan European Stoxx 600 was up 0.8 percent at 382.10 in opening deals after rising 0.6 percent on Friday.

The German DAX was climbing 1.3 percent, France’s CAC 40 index was up 0.7 percent and the U.K.’s FTSE 100 was rising 0.6 percent.

Evotec jumped 2.9 percent after saying it has completed its conversion into a company under European law.

Infineon Technologies rallied 5.3 percent and Dialog Semiconductor advanced 4.5 percent after Apple supplier Foxconn Industrial posted better-than-expected results for the fourth quarter.

Anglo-Australian mining giant Rio Tinto jumped 2.6 percent. The company said that its iron ore operations in the Pilbara, Western Australia, are progressively resuming following the passing of Tropical Cyclone Veronica.

easyJet shares slumped 7.7 percent. The low-cost airline expects its first-half performance to be in line with the guidance given in the trading statement on 22nd January 2019.

Swiss banking giant UBS Group gained 1 percent on news it would nominate Jeanette Wong and William Dudley for election to the Board at the AGM.

In economic releases, official data showed that the euro zone manufacturing sector saw its biggest contraction for nearly six years in March, as demand and output slumped.

Eurozone inflation slowed in March, defying expectations for stability, while the unemployment rate remained unchanged in February.

The euro area jobless rate was 7.8 percent in February, same as in January. That was in line with economists’ expectations.

U.K. manufacturing sector grew at the fastest pace in over a year in March, as stockpiling by businesses hit a record, survey data from IHS Markit showed.

Source: Read Full Article