BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed higher on Monday
with investors reacting positively to the results of the first round of France's
parliamentary election. A survey showing the downturn in the eurozone's
manufacturing sector wasn't as bad as intially feared in June, contributed as
well to the positive sentiment in the markets.

Germany's consumer price inflation data, and the report on UK manufacturing
activity also supported the markets.

The euro hit its strongest level since mid-June and the premium investors demand
for holding France's bonds plunged, as the prospect of French political gridlock
helped ease concerns about further strains on the country's public finances.

The HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI),
compiled by S&P Global, came in at 45.8 in June - ahead of a 45.6 preliminary
estimate.

Germany's consumer price inflation slowed faster than expected in June amid a
steeper year-on-year decline in energy prices and the core figure eased to its
lowest in about two-and-a-half years, while services inflation proved sticky for
another month, suggesting it is not yet time for policymakers at the European
Central Bank to drop their guard.

The UK manufacturing sector continued to expand in June as output and new orders
rose for the second straight month. The manufacturing purchasing managers' index
dropped to 50.9 in June from 51.2 in May. However, a reading above 50 indicates
expansion. The flash reading was 51.4.

UK house prices increased at a slower pace in June as housing affordability
remained stretched, mortgage lender Nationwide said.

House prices gained 0.2% on a monthly basis, which was slower than the 0.4% rise
registered in May. House prices were expected to remain flat in June.
Year-on-year, house prices posted a growth of 1.5% in June after rising 1.3% in
May.

The pan European Stoxx 600 climbed 0.32%. Germany's DAX gained 0.3%, and
France's CAC 40 ended 1.09% up. The U.K.'s FTSE 100 edged up 0.03%, while
Switzerland's SMI closed up 0.47%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece,
Iceland, Norway, Portugal, Russia, Spain and Sweden ended higher.

Netherlands, Poland and Turkiye closed weak.

In the UK market, Glencore, Standard Chartered, Phoenix Group Holdings, Barclays
Group, Land Securities, Lloyds Banking Group, Persimmon, Centrica, Barratt
Developments, Taylor Wimpey, Sainsbury (J), B&M European Value Retail,
Kingfisher, HSBC Holdings and Natwest Group gained 1 to 2.5%.

BAE Systems tumbeld 3.7%. Anglo American Plc ended 2.3% down. The company has
suspended production at Grosvenor steelmaking coal mine in Queensland,
Australia, following an underground coal gas ignition incident.

Beazley, 3i Group, Easyjet, Burberry Group, Relx, IHG, Airtel Africa and Admiral
Group lost 1.6 to 3.1%.

In the German market, Zalando rallied nearly 4.5%. Deutsche Bank and Commerzbank
gained 3.3% and 3%, respectively.

RWE, Siemens, Deutsche Post, Puma, Hannover Rueck, Rheinmetall, Fresenius and
Allianz gained 1.2 to 3%.

Sartorius fell about 3.3%. SAP, Qiagen, BASF, Merck and Adidas lost 1 to 2%.

In the French market, BNP Paribas, Credit Agricole and Societe Generale surged
higher as the first round of voting left Le Pen's National Rally looking short
of securing a majority in parliament.

Teleperformance climbed about 4.5%. BNP Paribas, Societe Generale, Engie, Credit
Agricole, Saint Gobain, Vinci, Safran, AXA, Bouygues, Capgemini, Sanofi,
TotalEnergies and Violia gained 2 to 3.5%.

Airbus Group shares rallied 2.7% after the company entered into a binding term
sheet agreement with Spirit AeroSystems in relation to a potential acquisition
of major activities related to Airbus.

Thales, Edenred, Unibail Rodamco, Carrefour and Vivendi also posted strong
gains.

Dassault Systemes, Publicis Groupe, Hermes International and STMicroElectronics
declined sharply.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX