European stocks open higher as markets digest U.S. data; Dax up 0.23%

Published 06/06/2016, 03:29 AM
© Reuters.  European stocks gain ground, recover from post-U.S. jobs data losses
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Investing.com - European stocks opened higher on Monday, as investors digested Friday’s downbeat U.S. employment data which sent the euro broadly higher against the dollar and weighed on European equities.

During European morning trade, the EURO STOXX 50 rose 0.23%, France’s CAC 40 edged up 0.15%, while Germany’s DAX 30 added 0.23%.

The Labor Department reported on Friday that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010. Economists had forecast that payrolls would increase by 164,000.

The unemployment rate fell to 4.7% from 5% in April as more people dropped out of the labor force.

The weak data cast doubts over the prospects for a rate hike by the Federal Reserve in the coming months and sparked renewed concerns over slowing global growth.

Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.22% and 0.41%, while Germany’s Deutsche Bank (DE:DBKGn) tumbled 0.92%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) slid 0.61% and 0.81% respectively. Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) overperformed however, with shares adding 0.12% and 0.15%.

Elsewhere, Accor (PA:ACCP) retreated 0.73%, erasing Friday’s gains posted following reports that China's Jin Jiang was planning to raise its stake in the French hotel group.

On the upside, Airbus Group (PA:AIR) edged up 0.13%, recovering from last week’s losses after Qatar Airways said it had cancelled its first Airbus A320neo jet and could cancel more due to delays in deliveries caused by engine problems.

In London, commodity-heavy FTSE 100 advanced 0.80%, boosted by gains in the mining sector.

Shares in Anglo American (LON:AAL) climbed 3.37% and Antofagasta (LON:ANTO) rallied 3.67%, while rivals BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) surged 3.88% and 4.25% respectively.

Financial stocks were also mostly higher, as Barclays (LON:BARC) gained 0.40% and HSBC Holdings (LON:HSBA) advanced 0.79%, while the Royal Bank of Scotland (LON:RBS) climbed 0.80%. Lloyds Banking (LON:LLOY) underperformed, with shares slipping 0.28%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.14% rise, S&P 500 futures a 0.12% gain, while the Nasdaq 100 futures indicated a 0.22% increase.

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