Investing.com – European equities traded mostly higher on Monday as Chinese manufacturing data boosted miners and investors focused on positive earnings news from Europe’s largest bank, HSBC.
In midmorning European trade, the benchmark Euro Stoxx 50 gained 0.28%, France’s CAC 40 rose 0.09% while Germany’s DAX 30 advanced 0.13%.
China’s official purchasing managers’ index for the manufacturing sector showed that activity continued its expansion in July, albeit at a slower-than-expected pace.
Specifically, the National Bureau of Statistics said on Monday that the official PMI stood at 51.4 in July, down from the previous month's 51.7 and a touch below the 51.6 forecast.
In European data, inflation in the euro zone clocked in at 1.3% in July, matching expectations for no change from the prior month’s reading. Core inflation did however unexpectedly tick up to 1.2%, from the prior reading of 1.1%, higher than expectations for no change.
Unemployment for the euro area also beat expectations with an unexpected drop to a fresh eight-year low of 9.1% in June. That was its lowest level since February 2009.
Shares of HSBC Holdings PLC (LON:HSBA) rose nearly 3% after the British lender reported a 5% increase in first half profit, beating forecasts.
Severn Trent (LON:SVT) led gains on the pan-European Stoxx 600, rising more than 3%, after receiving a two-peg upgrade from RBC to outperform from underperform.
To the downside, Imperial Brands (LON:IMB) led decliners, sinking around 4% in a continuation of the selloff spurred by the U.S. Food and Drug Administration’s announcement last Friday that it planned to cut nicotine in cigarettes. Rival British American Tobacco (LON:BATS) was also among the top decliners, falling 2%.
Meanwhile, oil prices edged higher on Monday, marking fresh two-month highs, as investor sentiment was boosted by signs of a tightening U.S. crude market and a threat of U.S. sanctions against OPEC-member Venezuela.
European energy stocks traded higher, as French oil and gas major Total SA (PA:TOTF) rose 0.57%, Italy’s ENI (MI:ENI) gained 1.58% and Norwegian rival Statoil (OL:STL) traded up 0.14%.
Financial stocks registered mixed trade, as French lenders BNP Paribas (PA:BNPP) fell 0.32% but Societe Generale (PA:SOGN) managed to edge forward 0.06%, while Germany’s Deutsche Bank (DE:DBKGn) dropped 0.16% but rival Commerzbank (DE:CBKG) traded up 0.58%.
Similar mixed price action was seen among peripheral lenders as Italian banks Intesa Sanpaolo (MI:ISP) rose 1.17% but rival Unicredit (MI:CRDI) fell 0.78%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) traded up 0.26% and 0.47%, respectively.
In London, the commodity-heavy FTSE 100 advanced 0.50%, leading European indices higher as the expansion in China’s manufacturing sector boosted sentiment in mining companies.
Shares in Glencore (LON:GLEN) gained 2.48%, Anglo American (LON:AAL) traded up 2.72%, BHP Billiton (LON:BLT) rose 1.76% and Rio Tinto (LON:RIO) advanced 2.06%.
Energy stocks moved higher, as BP (LON:BP) and rival Royal Dutch Shell (LON:RDSa) both rose 1.04%.
Financial stocks showed mixed trade, as shares in HSBC Holdings (LON:HSBA) rose 2.98%, Royal Bank of Scotland (LON:RBS) advanced 0.32%, but Lloyds (LON:LLOY) and Barclays (LON:BARC) gave up 0.75% and 1.05%, respectively.
In the U.S., stock futures pointed to a higher open. The Dow Jones Industrial Average futures rose 0.23%, S&P 500 futures gained 0.12%, while the Nasdaq 100 futures advanced 0.19%.