European stocks close higher
Frankfurt — European stocks closed higher on Monday, supported by upbeat German economic data and optimism about a potential Federal Reserve rate cut next week.
Gains were limited, however, by concerns over political uncertainty in France, where Prime Minister François Bayrou lost a confidence vote. President Emmanuel Macron is now set to begin the search for his fifth prime minister in less than two years.
The pan-European Stoxx 600 climbed 0.33%, with Germany’s DAX up 0.54% and France’s CAC 40 gaining 0.49%. The UK’s FTSE 100 edged up 0.07%, while Switzerland’s SMI fell 0.47%.
Other European markets — including Austria, Belgium, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, and Sweden — ended higher, while Denmark, Greece, Iceland and Turkey closed lower. The Czech Republic finished flat.
In the UK, Marks & Spencer climbed nearly 3% following a Citigroup rating upgrade, while Fresnillo rose 2.85%. Croda International, Howden Joinery, ICG, Standard Chartered, Polar Capital Technology, Weir Group, Reckitt Benckiser, Diploma, and Rolls-Royce Holdings gained 1.5% to 2.4%. Homebuilder Vistry jumped after entering a partnership with Homes England to accelerate large-scale development projects. Phoenix Group Holdings fell 7.6% despite reporting a smaller first-half loss than last year, while Diageo dropped 3.65%. Other decliners included Airtel Africa, Haleon, Unilever, Games Workshop, Imperial Brands, M&G, Hikma Pharmaceuticals and Coca-Cola HBC, which lost 1.2% to 2.5%.
In Germany, Zalando surged about 5%, with Adidas, Commerzbank, Volkswagen, Rheinmetall, Heidelberg Materials, RWE, Siemens Energy, and Siemens up 2% to 3.6%. Deutsche Telekom fell 3.7%, while Porsche, Daimler Truck Holding, Mercedes-Benz, and BMW lost 0.6% to 1%. In France, Schneider Electric rallied 3.6%, and Legrand, Airbus, Dassault Systèmes, Capgemini, Saint-Gobain, Crédit Agricole, Vinci, and Vivendi rose 1.5% to 2.4%. Edenred fell 3.7% amid delays in a meal voucher reform, while Stellantis, STMicroelectronics and Pernod Ricard dropped 1% to 1.6%.
Economic data supported Monday’s gains. Germany’s industrial production rose 1.3% in July, following a 0.1% decline in June, driven by a 9.5% increase in machinery and equipment output. Meanwhile, Germany’s foreign trade surplus narrowed as exports fell 0.6% in July, reversing a 1.1% rise in June, while imports dipped 0.1% after a 4.1% increase in June.
Investor sentiment showed caution despite the market rebound. The Sentix survey indicated eurozone investor morale plunged to -9.2 in September, the lowest since April, sharply down from -3.7 in August and missing expectations of -2.2.
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