European Markets Close Higher On Upbeat Manufacturing Data; Ocado Up 8%
The pan-European Stoxx 600 closed up by 1.6%, with oil and gas stocks jumping 3.6% to lead the gains.October’s final manufacturing PMI data for the euro zone came in at 54.8, up from 53.7 in September and outstripping expectations.Market focus is also attuned to U.S. election uncertainty and the latest coronavirus developments.
LONDON — European stocks closed higher on Monday as promising manufacturing data out of the euro zone and China boosted sentiment.
COMPANY NAME PRICE CHANGE %CHANGE VOLUME .FTSEFTSE 100FTSE5654.9777.701.39755064631.GDAXIDAXDAX11788.28231.802.0178370759.FCHICAC 40 IndexCAC4691.1496.902.11
The pan-European Stoxx 600 closed up by 1.6% provisionally. Oil and gas stocks jumped 3.6% to lead gains as all sectors — with the exception of travel and leisure — and major bourses entered positive territory.
In overnight trading in Asia-Pacific, stocks mostly rose as a private survey showed China’s manufacturing activity grew for the sixth straight month in October. The Caixin/Markit Purchasing Managers’ Index (PMI) for Chinese manufacturing came in at 53.6 for October, higher than the 53.0 reading forecast by analysts in a Reuters poll.
October’s final manufacturing PMI data for the euro zone came in at 54.8, up from 53.7 in September and outstripping expectations. The upside surprise was driven in part by resurgent factory activity in Germany.
Market focus is also attuned to U.S. election uncertainty and the latest coronavirus developments. On Wall Street, stocks jumped on the first trading day of the month as markets tried to recover from a brutal week and month ahead of the U.S. presidential election.
The British government announced on Saturday a national lockdown for England, making it the latest country to return to a nationwide shutdown, which begins on Thursday, to try to stem the rapid rise in cases and hospitalizations due to the virus.
On Monday, Prime Minister Boris Johnson defied critics claiming the government had moved too slowly, saying: “I make absolutely no apology whatever for doing my level best — our level best as a government — to avoid going back into a national lockdown.”
There are widespread concerns over the outcome of the U.S. presidential election Tuesday as a contested dispute over the result could delay much-needed fiscal stimulus for the U.S. economy.
A final NBC News/Wall Street Journal poll has found that former Vice President and Democrat nominee Joe Biden held a substantial national lead over President Donald Trump in the closing days before the vote.
A majority of voters say they’re unhappy with how the president has dealt with the coronavirus pandemic and where the country is going.
In terms of individual share price action, online supermarket Ocado climbed 8% after announcing the acquisition of two U.S. robotics start-ups. At the bottom of the European blue chip index, Belgian mining firm Umicore fell nearly 8%.
– Reuters