The European markets began the new trading week with gains in early trade. The early strength came from the news that Spain has formally requested EU bank aid and the news that Greece has offered to buy back as much as 10 billion Euros of its debt. The increase in Chinese manufacturing data also contributed to the positive mood. However, the markets pared their gains in late trading, after the U.S. ISM manufacturing data unexpectedly declined.
Eurozone finance ministers will meet again in Brussels later today, to discuss details of the buyback of Greek bonds held by investors at a discounted rate. The buyback will be financed with 10 billion euros from the rescue package. It has to be concluded by December 13 for Greece to secure 30 billion euros of agreed bailout money.
German Chancellor Angela Merkel said that Germany may ultimately write-off Greek debt, but not before 2015. In an interview with German weekly Bild am Sonntag on Sunday, Merkel said "If Greece one day handles its revenues again without having to borrow, then we must take a look at the situation and assess it. That is not going to happen before 2014/2015 if everything goes according to plan."
Moody's Investors Service lowered the rating of Eurozone's rescue fund, European Stability Mechanism to Aa1 from Aaa and maintained negative outlook. The latest move was driven by the downgrade of France, which remains the second largest contributor after Germany, to the financial resources of ESM.
China's manufacturing activity rose to a seven-month high in November on improved new orders and production, mirroring signs of stabilization in the second-largest economy. The Purchasing Managers' Index rose to 50.6 from 50.2 in October, official survey jointly issued by the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed Saturday. The sector expanded for the second straight month.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.26 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.16 percent.
The DAX of Germany climbed by 0.40 percent and the CAC 40 of France advanced by 0.26 percent. The FTSE 100 of the U.K. gained 0.08 percent and the SMI of Switzerland rose by 0.27 percent.
In Frankfurt, Deutsche Bank finished up by 0.37 percent, while Commerzbank lost 1.01 percent.
Duerr gained 1.78 percent, after HSBC initiated the stock with a ''Neutral'' rating.
Deutsche Bank initiated Euromicron with a ''Hold'' rating. The stock fell by 0.57 percent.
In Paris, Alcatel Lucent climbed by 2.26 percent. Deutsche Bank raised its price target on the stock.
EADS increased by 2.14 percent. The Airbus maker confirmed that key shareholders are discussing potential changes in the company shareholding structure and corporate governance.
Berenberg reduced its rating on Sanofi. The stock finished higher by 0.64 percent.
Credit Agricole climbed by 1.39 percent and Societe Generale added 0.49 percent, while BNP Paribas closed down by 0.87 percent.
In London, Cable & Wireless Communications has agreed with Batelco Group to sell majority of the businesses within its Monaco & Islands division for an enterprise value of $680 million. The stock increased by 1.15 percent.
Schroders gained 1.57 percent, after Bank of America Merrill Lynch upgraded the stock to "Buy" from "Neutral."
Swiss Life declined by 2.42 percent in Zurich, after Merrill Lynch downgraded the stock to ''Underperform'' from ''Neutral.''
Aryzta fell by 0.32 percent, after the Swiss bakery business reported a 9 percent growth in revenue for the first quarter, benefiting from positive currency translation effect.
The downturn in the Eurozone manufacturing sector eased as estimated in November, final data from Markit Economics showed Monday. The final manufacturing Purchasing Managers' Index rose to an eight-month month high of 46.2, in line with flash estimate. The reading was 45.4 in October.
The German manufacturing sector shrank as estimated earlier in November, but the rate of contraction eased from the previous month, final data from Markit Economics and BME showed Monday. The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector increased to 46.8 in November from 46 in October, as recorded in the preliminary reports.
The French manufacturing sector operating conditions continued to deteriorate in November, final data from Markit Economics showed Monday. The headline Purchasing Managers' Index for manufacturing rose to 44.5, from 43.7 in October. The reading was slightly below the flash estimate of 44.7.
The British manufacturing sector downturn eased and moved closer to stabilization in November, a survey carried out by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed Monday.
The seasonally adjusted Purchasing Manages' Index (PMI) for the manufacturing sector rose to 49.1 in November from 47.3 in October. Economists were looking for a more modest rise to 48.
Following two months of modest expansion, activity in the U.S. manufacturing sector unexpectedly contracted in the month of November, according to a report released by the Institute for Supply Management on Monday.
The ISM said its purchasing managers' index fell to 49.5 in November from 51.7 in October, with a reading below 50 indicating a contraction in manufacturing activity. The drop surprised economists, who had expected the index to come in unchanged compared to the previous month.
With spending on residential construction showing a notable increase, the Commerce Department released a report on Monday showing that total U.S. construction spending increased by much more than anticipated in the month of October.
The report said construction spending rose 1.4 percent to a seasonally adjusted annual rate of $872.1 billion in October from the revised September estimate of $860.4 billion. Economists had been expecting a much more modest increase of about 0.4 percent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.