European stock markets rose on Monday following a negative start of the day after an index of factory activity in the euro area saw a surprising improvement.
The Stoxx Europe 600 index rose 0.4% to 377.13, setting it on track for its first rise in three sessions. The benchmark index on Friday closed out October with an 8% rise, its best monthly performance since July 2009.
European stocks opened in the red on Monday after a private index of China’s manufacturing activity, the Caixin China manufacturing purchasing managers index, signaled the sector contracted for an eighth straight month in October. The official reading on the country’s factory activity also indicated a contraction, sending stock markets lower across most of Asia.
Bat later on, the PMI reading for the eurozone helped European stock markets turn higher. The final reading on eurozone manufacturing PMI came in at 52.3 in October, up from the flash estimate of 52 and up from September’s 52 print.
Germany’s own manufacturing PMI was revised up to 52.1 from the 51.6 preliminary reading. The DAX 30 gauge rose 0.86%, for one of the largest country-specific advances in Europe on Monday.
France’s PMI was worse than forecast, coming in at 50.6, vs. the flash reading of 50.7. The CAC 40 index gained 0.39%.
The manufacturing PMI for the U.K. jumped to a 16-month peak of 55.5 in October, briefly sending London stocks higher. However, the U.K.’s FTSE 100 index dropped 0.42%, weighed by the benchmark’s miners after the weak China data.
In the currency market, the euro last traded at 1.1025, up 0.2%. The Turkish lira rallied against the dollar in early Monday trade after President Recep Tayyip Erdogan’s political party staged a comeback in Sunday’s election. TRY/USD last traded at 0.3560, up 3.76%.
Movers
Banks were among the leaders after a series of earnings reports. HSBC Holdings PLC fell 1.1% after the U.K. bank said adjusted revenue fell 4% in the third quarter. The bank, however, reported a 53% jump in profit, reflecting lower fines, among other things.
Shares of Commerzbank AG rose 6.9% after the German lender said its turnaround plan is on track. Separately, Chief Executive Martin Blessing announced on Sunday he will leave next year.
Swedish appliance maker Electrolux AB dropped 6.4% after the U.S. government challenged the company’s planned takeover of General Electric Co.’s home-appliance business.
Shire PLC dipped 1.3% after the pharma company announced it will buy Dyax Corp. for $37.30 in cash per share, or about $5.9 billion.
Hikma Pharmaceuticals PLC slumped 5% after the drug maker lowered its guidance for its generics business because of slower-than-expected sales growth in its gout medication, colchicine.
Ryanair Holdings PLC rose 1.5% after strong earnings report.
