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European Shares Edge Higher; Economy-sensitive Stocks Shine

stockmarkets jan23 08aug22 lt

European stocks edged higher in cautious trade on Monday, with economy-sensitive stocks leading advances following some positive data from China and the United States.

Sentiment was also underpinned after a survey showed investor morale in the euro zone edged up slightly in August from the previous month.

Sentix's index for the 19-country currency block rose to -25.2 points from -26.4 in July.

"The economic situation in the Eurozone remains difficult. A recession is still very likely amid weak consumer confidence, inflation and high energy prices," Sentix noted.

After the July surge in U.S. non-farm payroll employment raised the odds of a third 75 basis-point rate hike in September, investors now looked ahead to the release of U.S. inflation data and U.K. GDP data this week for further direction.

The pan European Stoxx 600 rose half a percent to 438 after losing 0.8 percent on Friday. The German DAX gained 0.3 percent, France's CAC 40 index climbed 0.6 percent and the U.K.'s FTSE 100 added 0.3 percent.

Miners traded mixed despite robust exports data from China.

Oil & gas firm BP Plc rose half a percent and Shell added 0.3 percent.

Page Group slumped 7 percent in London after the recruiter noted a "slight slowing in time to hire" in July across some of its markets.

Joules jumped 50 percent after saying that it is in discussion with larger rival Next for the latter to take a strategic stake in the struggling British fashion chain.

French utility Veolia gained 1 percent after it confirmed a deal to sell Suez's U.K. waste business to Australia's Macquarie Group for around 2.4 billion euros ($2.4 billion).

German engineering-services company Bertrandt added 1 percent after reporting higher net profit and revenue in the first nine months of fiscal year.

Telecommunications provider Q.beyond fell about 1 percent after reporting a loss in the second quarter.

Siemens Energy, the supplier of equipment to the power industry, lost 1.5 percent after widening its quarterly loss.

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