LONDON, U.K. – European markets started higher on Monday, following the more upbeat economic data of China, but the Eurozone manufacturing activity isn’t doing as good.
The pan-European Stoxx 600 index recorded a moderate 0.4% mid-trade on Monday, boosting up almost all the sectors under the index and other major securities market in positive territory.
Among the top gainers on Euro stocks on Monday are banks such as BNP Paribas, which recorded a1.12% advance on shares as well as oil producers led by BP with its 1.58% increase.
The German DAX index also traded Monday positively with a recorded 0.64% rise towards its current 13,321.72 points, while the CAC 40 index in France gained around 0.5% towards 5,934.68. The FTSE 100 index of UK also traded with a 0.57% advance to reach its current 7,388.37 value.
The main focus of the market still remains on the development, and new updates over the trade discussions between the US and China as the two of the biggest economies in the world try to settle phase one to end the long-standing trade war.
The trade war between the two countries has been going on for months, and trade agreement has long been expected. The news about finalizing the trade agreement between the US and China boosted the global stock market, especially the trade-sensitive stocks, early last week. However, most have recorded declines later the previous week after the signing of the Hong Kong bill.
Investors are still waiting anxiously whether China will retaliate over Washington, passing a bill that supports the pro-democracy protester is the China-governed Hong Kong. Plus, the impending new 15% tariffs Washington will impose on around $156 billion of Chinese goods expected to start on December 15 has also kept market players on edge.
Some analysts have said that phase one of the trade discussions between the US and China is unlikely to reach an agreement before the year ends.
Back on shares, US stock futures have inched stronger, recording around 0.35% increase on Monday, also following the Chinese manufacturing reports published overnight, showing more improvement for November compared to the previous month. Plus, the modestly higher revised PMI for the manufacturing sector in the Eurozone also boosted global shares.
On the other hand, online grocery firm Ocado Group marked as one of the top losers as it recorded around a 6.3% decline on shares after its announcement of convertible bind offers valuing around 500 million euros.
Retailer Ted Baker also led the decliners with a recorded 2% loss on Monday, marking a 75% plunge for 2019.