European Stocks Rise amid Downbeat US Data
European stocks surged on Monday’s open, with EURO STOXX 50 climbing 0.23%, France’s CAC 40 inching up 0.15% and the German DAX 30 advancing 0.23%.
Financial stocks were mixed; France’s BNP Paribas and Societe Generale decreased 0.22% and 0.41% respectively, and the German Deutsche Bank plummeted 0.92%.
Among peripheral lenders, Italy’s Unicredit and Intesa Sanpaolo slipped 0.61% and 0.81%. However, Spain’s BBCA and Banco Santander shares gained 0.12% and 0.15%.
In other news, Accor slid 0.73%, burying Friday’s gains posted following reports that Jin Jiang, the largest star rated hotel group in China, was planning to increase its stake in the French hotel group.
Airbus rose 0.13%, recovering the previous week’s losses following an announcement from Qatar Airways that it had cancelled its first Airbus A320neo jet and could cancel more due to delivery delays. These aforementioned postponements are caused by engine troubles.
Elsewhere, commodity-heavy FTSE 100 in London added 0.80%, aided by gains in the mining sector.
Anglo American shares soared 3.37% and Antofagasta surged 3.67%. Rivals BHP Billiton and Rio Tinto, meanwhile, rocketed 3.88% and 4.25% as well.
Financial stocks were mostly higher, with Barclays adding 0.40% and HSBC Holdings increasing 0.79%. Meanwhile, the Royal Bank of Scotland surged 0.80%. Lloyds Banking, however, underperformed, its shares dropping 0.28%.
US Employment Data
Market investors digested the weak US job data released previously on Friday, pushing the euro higher against the greenback and weighing on European equities. The Labor Department announced that the US economy added 38, 000 jobs in May, the lowest addition since September 2010. Payrolls would gain 164,000, economists had forecast.
In April, the unemployment rate dropped to 4.7% from 5% as more people dropped out of the labor force.
The downbeat data made the possibility for a rate increase by the Federal Reserve in the coming months rather uncertain, and it triggered concerns once more about slowing global growth.
Elsewhere in the US, equity markets directed to a higher open — the Dow Jones Industrial Average futures indicated a 0.14% increase, S&P futures with 0.12% addition, and the Nasdaq 100 futures pointed to a 0.22% rise.
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