Investing.com - European stocks opened higher on Monday, despite the release of mixed Chinese manufacturing activity data, as investors eyed a fresh batch of corporate earnings reports.
During European morning trade, the EURO STOXX 50 rallied 1.11%, France’s CAC 40 advanced 0.75%, while Germany’s DAX 30 jumped 1.08%.
Data earlier showed that China’s official manufacturing purchasing managers’ index ticked down to 49.9 in July from 50.0 the previous month, compared to expectations for an unchanged reading.
However, the Caixin manufacturing PMI rose to 50.6 last month from 48.6 in June, compared to expectations for an uptick to 48.7.
Financial stocks were broadly higher after the stress test results from the European Banking Authority released late Friday showed that four banks failed and one Italian bank, Banca Monte dei Paschi, ended up with a negative capital ratio.
French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rose 0.21% and 1.41%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) rallied 1.25% and 2.57%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) surged 1.82% and 2.54% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.44% and 2.24%.
Elsewhere, Porsche SE rose 0.34%, after saying first-half net profit dropped by 41%. Porsche is the main shareholder of Volkswagen (DE:VOWG_p), which is still grappling with its emissions scandal.
On the downside, Heineken N.V. plummeted 3.03% after the brewer reported a rise in profit and revenue and reiterated its full-year profit expectations.
In London, commodity-heavy FTSE 100 gained 0.53%, boosted by gains in the energy and mining sectors.
Royal Dutch Shell (LON:RDSa) was one of the best performers on the index, with shares jumping 2.96%, while rival company BP (LON:BP) climbed 0.52%.
Mining giants Glencore (LON:GLEN) and Rio Tinto (LON:RIO) advanced 0.66% and 1.40% respectively, while Antofagasta (LON:ANTO) rallied 1.90% and BHP Billiton (LON:BLT) surged 2.31%.
In the financial sector, stocks were also mostly higher, as HSBC Holdings (LON:HSBA) edged up 0.15% and Barclays (LON:BARC) added 0.19%, while Lloyds Banking (LON:LLOY) rallied 1.58%. The Royal Bank of Scotland (LON:RBS) held steady, with shares dipping 0.05%.
Meanwhile, Tesco (LON:TSCO) shares tumbled 1.19% after health fears sparked the recall of the company’s – as well as ASDA, the Co-op, Sainsbury's and Waitrose – products manufactured by Yeo Valley. The Food Standards Agency said the products "may contain small pieces of rubber".
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.45% gain, S&P 500 futures a 0.39% rise, while the Nasdaq 100 futures indicated a 0.31% increase.