Stocks in Europe jumped Monday morning, as investors in Europe digested stronger-than-expected Chinese data.
The pan-European Stoxx 600 was 0.8 percent higher with every sector in positive territory.
Basic resources were the outperformer, up by more than 2 percent. The sector was reacting to positive data out of Beijing. Manufacturing activity numbers showed an increase in March after three months of decline, suggesting a rebound in economic activity. China is the second largest economy in the world and any indication of a slowdown tends to worry investors about the overall prospect of the global economy.
Furthermore, auto stocks rose. The sector was also reacting to weekend reports that Fiat Chrysler and PSA Group are exploring ways to cooperate in Europe.
In individual stock news, easyJet sank more than 6 percent in early deals. This was after the airline said that Brexit uncertainty had led to softer ticket pricing and that its outlook for the second half of the year was “more cautious.”
Brexit, Ukraine, PMIs
Investors will be digesting the latest political developments. U.K. lawmakers will vote on alternatives to the Brexit process on Monday. At the same time, media reports suggest that Prime Minister May could put her withdrawal agreement to a fourth vote on Tuesday.
The U.K. has about two weeks to decide a way forward for the Brexit process or risks leaving the EU on April 12 without a deal.
In Ukraine, 41-year-old Volodymyr Zelensky, who plays a fictional president in a popular TV series, came first in exit polls Sunday. Meanwhile, in Slovakia, voters elected its first female president this weekend — Zuzana Caputova, an anti-corruption lawyer.
Investors will also focus on data with manufacturing PMIs due across the euro zone throughout the morning, as well as, euro area inflation data due at 9 a.m. London time.
Source: CNBC
