European Equity Benchmarks Close Higher as Investors Favor Banks, Real Estate

The broad-based major European indices closed higher in Monday's trading session, as banks and real estate stocks helped boost the British, German, and French markets.

In economic news, Eurostat, the statistical office of the European Union, reported that seasonally adjusted industrial production fell 0.6% in the euro area (EA19), and 0.5% in the EU28 in June, compared with May. In May, industrial production rose 1.2% in both zones. In June, compared with June of 2016, industrial production increased 2.6% in the euro area, and 2.9% in the EU28.

In Scotland, July's PMI survey data from the Bank of Scotland reported a strong start to Q3 for the Scottish private sector. The Bank of Scotland said that output rose at the fastest pace in nearly three years, reflecting stronger expansions in both manufacturing and services.

Increased output was driven by a steady expansion in new business in July. The manufacturing sector registered strong growth in new orders, while new business in the service sector rose at a comparatively moderate rate. The seasonally adjusted headline Bank of Scotland PMI rose to 53.8 in July, from 51.1 in June. The data showed the strongest growth of Scottish private sector output in 33 months. It also extended the current trend of expansion to eight months, the longest stretch since 2014.

In equities, Tourism company TUI, and mining company Glencore International led the FTSE higher in London, rising 4.8% and 3%. Medical product and technology company ConvaTec Group, bank Standard Chartered, and paper packaging company Smurfit Kappa Group moved up 2.2%, 2.1% and 2% respectively. Mining giant Bhp Billiton, and real estate company British Land Company gained 1.9% and 1.8% each.

In Frankfurt, banks buoyed the DAX, as Commerzbank and Deutsche Bank rose 3.4% and 3.1%. Media company Prosiebensat 1 Media, industrial gases manufacturer Linde, and industrial group ThyssenKrupp gained 2.5%, 2.3%, and 2.1% respectively. Electricity and natural gas providers E.ON and RWE climbed 2.1% and 2%.

And in Paris, commercial real estate company Unibail Rodamco, and telecommunications and construction company Bouygues helped raise the CAC, climbing 3.5% and 2.6%. They were followed by food company Danone, and aerospace and defense firm Safran, each of which closed 2.3% higher. Natural gas and electricity provider Engie, automaker Peugeot, and network infrastructure provider Nokia each closed 1.8% higher.

The FTSE gained 0.60%, the DAX rose 1.26%, and the CAC-40 climbed 1.20%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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