The European markets finished in positive territory Monday, rebounding from the weakness of the prior trading week. Investors are eagerly anticipating the results of the two-day FOMC meeting that will begin in the U.S. on Tuesday. Federal Reserve Chairman Ben Bernanke is expected to address some investor concerns after the meeting on Wednesday. Group of Eight leaders are also holding their two-day summit in Northern Ireland today, with trade in focus.
Germany's economic activity will pick up strongly in the second quarter, the Bundesbank said in its monthly report on Monday. But, the bank forecast the momentum to slowdown in the summer.
Ahead of the European Union summit later this month, the economy and labor ministers from Italy, France, Germany and Spain met in Rome to discuss youth unemployment. At the meeting, ministers focused on plans to finance small and medium sized companies through European Investment Bank. Access to funds will help firms to raise employment.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.92 percent.
The DAX of Germany climbed by 1.08 percent and the CAC 40 of France advanced by 1.54 percent. The FTSE 100 of the U.K. rose by 0.41 percent and the SMI of Switzerland gained 1.23 percent.
In Frankfurt, Volkswagen increased by 2.14 percent. Daimler climbed by 0.84 percent and BMW added 0.86 percent.
Hannover RE gained 3.32 percent, after it stated that recent flooding in Europe will not pose a threat to its 2013 earnings.
Gagfah climbed by 3.66 percent, after Kepler Cheuvreux raised the real estate investment trust to ''Buy'' from ''Hold.''
In Paris, France Telecom rose by 3.08 percent. JPMorgan downgraded its rating on telecoms to ''Underweight'' from ''Neutral.''
Total gained 2.28 percent, after JP Morgan raised its rating on oil companies to "Overweight" from "Neutral." Shares of BP rose by 0.97 percent in London. Royal Dutch Shell increased by 0.44 percent and BG Group added 0.29 percent.
In London, Legal & General fell by 0.21 percent. The company appointed Mark Gregory as Group Chief Financial Officer with effect from July 1.
Morgan Stanley upgraded HSBC to ''Overweight'' from ''Equalweight.'' The lender advanced by 0.21 percent.
Reckitt Benckiser Group increased by 2.18 percent, after positive comments from Citigroup.
Associated British Foods dropped by 2.81 percent, after Nomura downgraded the stock to "Reduce" from "Neutral."
ABB gained 2.58 percent, in Zurich after it announced a new chief executive.
Richemont rose by 1.50 percent, after HSBC upgraded the stock to "Overweight" from "Neutral."
Eurozone's trade in goods with the rest of the world resulted in a surplus in April, which was lower than a month earlier, data from Eurostat revealed Monday. The trade surplus fell to EUR 14.9 billion in April from EUR 22.5 billion in March. A year earlier, the surplus amounted to EUR 3.3 billion.
Eurozone hourly labor costs rose at a faster pace of 1.6 percent year-on-year in the first quarter, following a 1.3 percent increase in the fourth quarter of 2012, Eurostat reported Monday.
Employment in the German manufacturing sector increased modestly in April, preliminary data released by the Federal Statistical Office showed Monday. The number of persons employed in manufacturing units with fifty or more employees increased 0.7 percent on annual basis to around 5.2 million in April.
Sentiment among British households regarding their personal finances turned the least downbeat in more than three years in June, indicating that the squeeze on household budgets eased notably, data from a survey by Markit Economics showed Monday.
The seasonally adjusted household finance index increased to 40.8 in June from 40.4 in May, hitting the highest level since February 2010.
Labor costs in the UK increased in the first quarter of 2013 from a year earlier, data from the Office for National Statistical Office revealed Monday. The index of labor costs per hour, an experimental measure, increased 2 percent in the first quarter compared with the same quarter a year earlier.
Asking price for a property in the UK rose to a fresh record high in June, lifted by a jump in prices in the South East and London, the latest survey by Rightmove revealed Monday. The average property asking price was GBP 252,798 in June compared with GBP 249,841 in May. Prices increased 1.2 percent month-on-month in June, posting the sixth consecutive monthly rise.
Conditions for New York manufacturers improved modestly in the month of June, according to a report released by the Federal Reserve Bank of New York on Monday, with the index of activity in the sector climbing into positive territory.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected to climb to a positive 0.5.
Homebuilder confidence in the U.S. jumped much more than expected in the month of June, according to a report released by the National Association of Home Builders on Monday, with the group's homebuilder confidence index surging up to a seven-year high.
The report said the NAHB/Wells Fargo Housing Market Index soared to 52 in June from 44 in May. Economists had been expecting the index to show a much more modest increase to a reading of 45.
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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.