Banks lead Europe higher
European shares edged higher in quiet trading on Monday, with bank stocks leading the gains, as Sino-U.S. trade optimism and strong Chinese economic data eased some worries over the global economy.
By 0932 GMT, the pan-European STOXX 600 index was up 0.1 percent, hovering near eight-month highs. The banks-heavy Italian and Spanish indices led the gains.
Dragging down the euro zone blue chips index was pressured by Finland’s Nokia, down about 3 percent, after Goldman Sachs downgraded the stock to “sell”.
Nestle, trading without entitlement to its latest dividend payout, dragged down the food & beverages index down 0.4 percent and pulled the Swiss SMI index into the red.
London-listed shares of Rio Tinto weighed down basic resources sector. The mining major announced plans to invest an extra $302 million to develop its Resolution copper project in the U.S. state of Arizona, as it looks to expands output to meet the lucrative market for new energy vehicles.
Among top performers was Norsk Hydro up 4.7 percent as the company’s alumina refinery in Brazil, Alunorte, and Brazilian public prosecutors jointly petitioned a federal court to lift a production embargo.
Daimler slipped on a report that Germany’s motor vehicle authority KBA was investigating the carmaker on suspicion that 60,000 Mercedes cars were fitted with software aimed at tricking emissions tests. A spokesman for Daimler, owner of Mercedes-Benz, said the carmaker was reviewing the facts and fully cooperating with the KBA.
Italian media group Mediaset and its German rival Pro Sieben Sat.1 Media rose on merger speculation, even after both companies denied they were in talks.
Vivendi gained after the French media conglomerate posted higher first-quarter revenue and said it was making progress on the planned sale of up to 50 percent of its UMG music arm.
Asian shares began the week with a positive tone after U.S. Treasury Secretary Steven Mnuchin said on Saturday he hoped that the United States and China were close to the final round of negotiations.