The European markets rose for the second day on Monday, as strong U.S. economic data boosted banking stocks and commodity stocks gained on firmer crude oil and metals prices.
The Institute for Supply Management in the U.S. said its index of activity in the manufacturing sector jumped to 58.4 in January from 54.9 in December, with a reading above 50 indicating growth in the sector. The increase by the index exceeded the expectations of economists, who had expected the index to edge up to a reading of 55.5.
The U.S. Commerce Department said in its report that personal income increased by 0.4% in December following an upwardly revised 0.5% increase in November. Economists had expected income to increase by 0.3% compared to the 0.4% growth originally reported for the previous month.
Additionally, the U.S. Commerce Department said that personal spending edged up by 0.2% in December after an upwardly revised 0.7% increase in the previous month. While the increase in spending was slightly below economist estimates of 0.3% growth, the November growth was upwardly revised from the previously reported 0.5% growth.
Meanwhile, the Eurozone manufacturing purchasing managers' index hit a two-year high in January, led by France and Germany, survey data released by Markit Economics showed Monday. The final Eurozone Manufacturing PMI reading rose to 52.4 in January, above the flash estimate of 52, from December's 51.6.
Crude for March delivery rose $0.87 to $73.76 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FSTEurofirst 300 index of pan-European blue chips closed 0.60% higher at 1,018.00 points, while the narrower DJ Stoxx 50 index rose 0.50% to 2,490.83 points.
Around Europe, the U.K.'s FTSE 100 index climbed 1.14% to 5,247.41, while France's CAC 40 index rose 0.60% to 3,762.01 and Germany's DAX index surged up 0.81% to 5,654.48.
Banking stocks were among the top gainers. HSBC, Europe's largest bank, rose 1.4%, while Royal Bank of Scotland, Britain's biggest government-controlled bank, climbed 7.9% and Deutsche Bank, Germany's biggest lender, surged up 2.9%. BNP Paribas, France's largest bank, gained 1.4%.
Heavily weighted oil stocks gained after crude oil prices advanced. BP, Europe's biggest oil company, climbed 1.3% and Royal/Dutch Shell, the second biggest, rose 1.1%.
Similarly, mining stocks edged higher after metals prices rose. BHP Billiton, the world's biggest miner, surged up 1.6%, while Anglo American, the second biggest, and Rio Tinto, the third biggest, both climbed 2.5%. Copper miner Antofagasta gained 3%.
Ryanair Holdings, Europe's biggest discount airline, rallied 6.9%, as the company raised its full year earnings forecast after reporting a narrower third quarter loss.
On the other hand, French media, entertainment and telecommunications giant Vivendi fell 2.4% after the company was found guilty of misleading investors by a U.S. jury.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.