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European Equity Benchmarks Close Higher; Mining, Oil Stocks Boost Markets

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The broad-based major European indices closed higher in Monday trading as mining and oil stocks helped lift the markets.

In economic news, Europe Sector PMI data from IHS Markit indicated broad-based growth across all seven broad categories monitored by the survey in June. Technology saw the sharpest rise for the fifth straight month, which was underpinned by an expansion in technology equipment. Industrials had the second-fastest rate of increase, while consumer services and financials both increased more than in the previous month.

Contributing to the quicker rate of growth in financials was banks, which IHS said recorded the most marked expansion at the granular level, closely followed by other financials. General industrials (third) and beverages (fourth) rose at a faster pace compared to May. Health care remained a weak point across the EU, recording only a negligible expansion during June, said IHS.

Meanwhile, Germany exported goods worth EUR109.1 billion ($128.6 billion), and imported goods worth EUR89.4 billion in May, according to the Federal Statistical Office (Destatis). German exports declined 1.3%, while imports increased 0.8% in May year on year. After calendar and seasonal adjustment, exports increased 1.8%, and imports 0.7% compared with April.

The foreign trade balance showed a surplus of EUR19.7 billion in May, compared to a surplus of EUR21.8 billion at the same time last year. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of EUR20.3 billion in May.

Destatis also reported that the construction prices for conventionally constructed new residential buildings (construction work performed at the building; including turnover tax) in May were up 4.1% compared with May 2017. Concerning non-residential buildings, the prices were up 4.1% for office buildings and also for industrial buildings in May compared with May 2017. Road construction prices rose 5.6% compared with the same month last year.

In equities, mining stocks helped buoy the FTSE in London as Antofagasta, BHP Billiton, and Evraz climbed 3.4%, 2.6%, and 2.5% respectively, while Rio Tinto and Anglo American were up 2.2% and 2.1%. Turnaround firm Melrose Industries rose 2.8%, while industrial equipment rental company Ashtead Group, and online food odering company Just Eat were up 2.5% and 2.4%.

In Frankfurt, Airline Deutsche Lufthansa, and software firm SAP led the DAX higher, rising 2.2% and 1.9% respectively, while semiconductor company Infineon Technologies, and reinsurance firm Munich Re were up 1.5% and 1%. Postal services provider Deutsche Post and insurance firm Allianze increased 0.8% each, while industrial gases company Linde, and tire maker Continental each closed 0.7% higher.

In Paris, auto parts supplier Valeo, and luxury goods company Kering led the CAC into positive territory, rising 2.4% and 2% respectively, followed by oilfield services firm TechnipFMC, and public relations firm Publicis Groupe, which were up 1.9% and 1.8%. Hotel operator Accor, and energy management firm Schneider Electric were up 1.8% and 1.6%, while Legrand closed up 1.5% and oil company Total was 1.3% higher.

The FTSE rose 0.92%, the DAX gained 0.38%, and the CAC-40 increased 0.42%.

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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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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