Investing.com - European stocks were higher on Monday, despite the release of downbeat German factory orders data as investors eyed the beginning of third-quarter earnings season next week.
During European morning trade, the DJ Euro Stoxx 50 surged 1.77%, France’s CAC 40 climbed 0.66%, while Germany’s DAX rallied 1.27%.
Data on Monday showed that German factory orders fell 5.7% in August, compared to expectations for a 2.5% decline. It was the largest drop since 2009, adding to concerns over the outlook for the region’s largest economy.
European equities had come under pressure last week after the European Central Bank refrained from implementing additional stimulus measures at its meeting last week, indicating that it will wait to see the effects of recent stimulus measures on the region’s economy.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.55% and 0.99%, while Germany's Deutsche Bank (XETRA:DBKGn) rallied 1.22%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.65% and 0.73% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) climbed 0.84% and 0.97%.
On the downside, Norwegian Air Shuttle (OSLO:NWC) plunged 5.76% after saying it expects a loss due to hedging positions. The airline also said it carried 16% more passengers in September than in the same month last year.
In London, FTSE 100 rose 0.42%, led by Tesco (LONDON:TSCO), up 2.16% after announcing that it had appointed the chief executive officer of Compass Group and the former head of Ikea Group as non-executive directors, strengthening its board.
Financial stocks added to gains, as Lloyds Banking (LONDON:LLOY) added 0.25% and the Royal Bank of Scotland (LONDON:RBS) climbed 0.59%, while HSBC Holdings (LONDON:HSBA) and Barclays (LONDON:BARC) jumped 1.03% and 1.45% respectively.
In the mining sector, stocks were also mostly higher. Shares in Fresnillo (LONDON:FRES) and Rio Tinto (LONDON:RIO) edged up 0.14% and 0.15% respectively, while Glencore Xstrata (LONDON:GLEN) rose 0.27% and Vedanta Resources (LONDON:VED) gained 0.80%.
Meanwhile, BP (LONDON:BP) saw shares slide 0.45% amid reports the oil and gas giant is seeking to undo payments to some victims of the 2010 Gulf of Mexico spill.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.35% rise, S&P 500 futures signaled a 0.33% gain, while the NASDAQ 100 futures indicated a 0.38% increase.