European shares are trading higher Monday as investors gains optimism on a positive US jobs report Friday and also, gains in data releases from France and Germany earlier in the day.
However, the longevity of that optimism is questionable, coming as it does against a backdrop of ongoing global trade tensions.
By 1315 BST, the EUROSTOXX 600 was up 0.39%, while the EUROSTOXX 50 was 0.16% in the green. Regional bourses were also positive. The German DAX rose 0.06%, the French CAC gained 0.23% and the Spanish IBEX was 0.34% higher.
Data gains boost investor optimism
The trading session began on the front foot after Friday’s US jobs report. The monthly non-farm payrolls report showed that some 213,000 new jobs were filled during June. While that was a little below the 244,000 gain made in May, it was ahead of economists’ expectations.
And, despite an increase in the US unemployment rate to 4% from 3.8% and a below-expected earnings inflation rate of 2.7%, the overall report was deemed good enough to spark a rally on the US stock market Friday. That positive tone was carried forward to Monday’s European session.
Also buoying investor sentiment was European data.
Official German figures showed that exports from the country rose by a bigger-than-expected 1.8% on the month in May. And, France’s Central Bank’s latest economic forecast for the country was also positive. It expects the French GDP rate to remain at 0.3% in the second quarter of 2018.
A number of stocks were helping to power the regional and national indices forward Monday.
- Altice shares rose 1.77% to €3.34.
- Air France-KLM shares gained 6.29% to hit €7.34.
- TGS Nopec shares surged 6.30% to NOK308.60.
However, there were also some fallers Monday. Among them were Renault shares, which slipped 2.04% to trade at €72.94 after its partner, Nissan admitted fraudulent emissions and fuel efficiency testing activity.