European Markets Close Slightly Higher As Investors Digest U.S. Stimulus Hopes; Banks Rise 2%
The pan-European Stoxx 600 pared some of its earlier gains to provisionally close up 0.2%.France’s CAC 40 ended the day provisionally 0.3% higher, as did the U.K.’s FTSE 100.Spain’s Ibex was the best performer of the major indexes, closing 1.7% in the green.Data showed Chinese factory deflation slowing in July, offering hope for recovery and boosting risk sentiment.House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Sunday signaled a willingness to restart negotiations on a new coronavirus relief bill.
European stocks ended the day cautiously higher on Monday, brushing off tensions between the U.S. and china that hit technology stock.
The pan-European Stoxx 600 pared some of its earlier gains to provisionally close up 0.2%. France’s CAC 40 ended the day provisionally 0.3% higher, as did the U.K.’s FTSE 100. Spain’s Ibex was the best performer of the major indexes, closing 1.7% in the green. Germany’s DAX ended the day flat.
Banks added almost 2% to lead gains on the back of some positive data from China which bolstered hopes of economic recovery, while tech stocks dropped 1.6% amid a fraying of relations between Washington and Beijing.
Asian stocks were mostly higher Monday after data showed Chinese factory deflation slowing in July. However, gains were capped by simmering Sino-U.S. tensions after President Donald Trump issued executive orders last week that are set to ban American use of WeChat and TikTok, taking effect from the middle of next month.
Banks added almost 2% to lead gains on the back of some positive data from China which bolstered hopes of economic recovery, while tech stocks dropped 1.6% amid a fraying of relations between Washington and Beijing.
Asian stocks were mostly higher Monday after data showed Chinese factory deflation slowing in July. However, gains were capped by simmering Sino-U.S. tensions after President Donald Trump issued executive orders last week that are set to ban American use of WeChat and TikTok, taking effect from the middle of next month.
International investors were also keeping an eye on stimulus measures in the U.S.; stocks in the country rose Monday after President Donald Trump signed some executive orders aimed at extending coronavirus relief.
The orders included an extension of some unemployment benefits, deferred student loan payments through 2020 and provided a payroll tax holiday.
The executive orders have been widely criticized as ineffective and unconstitutional, and House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Sunday signaled a willingness to restart negotiations.
There are no major earnings or data releases in Europe Monday.
In terms of individual share price action, cinema chain Cineworld jumped around 17% to lead the Stoxx 600, while Spain’s Banco de Sabadell was 9.4% higher. Meanwhile, German meal kit delivery company Hellofresh fell around 5%
– CNBC.