The German market is trading in positive territory in afternoon session Monday, led by utilities after the German government announced plans to extend the life of nuclear reactors. Optimism about global economic recovery following US economic data as well as positive trading in Asian markets also lifted market sentiment.
Crude for October delivery is slipping $0.30 to $74.30 a barrel, while December gold is adding $1.65 at $1249.45 an ounce.
In a day of light economic data, survey results revealed by the Sentix research group showed that investor sentiment in the eurozone fell more than expected from its 30-month high in August. The confidence index fell to 7.6 from 8.5 in August. Economists had forecast a score of 7.8. The current situation index fell to 15.0 from 16.5, still suggesting strong investment conditions. At the same time, the expectations index fell to 0.50 from 0.75, implying a deteriorating outlook.
Survey results released by the Engineering Employers Federation revealed that U.K. manufacturing output and orders were "buoyant" between July and September on the back of strong overseas demand, suggesting growth in manufacturing output should at least continue into the next quarter. The results reveal that output and new order balances were 33% and 35% respectively, both record high levels since the survey began in 1995. The output and new order balances had come in at 30% and 34%, respectively, in the June quarter.
After opening sharply higher at 6,156 compared to previous close at 6,135, the index traded in the positive territory within in a narrow range between 6,141 and 6,165. The index is currently gaining 0.35%
Utility stocks led the gains. E.On is gaining 2.49%, RWE is up 2.33% abd Deutsche Boerse is up 1.71%.
Bank stocks are also witnessing gains on optimism about global economic recovery. Deutsche Bank is adding 0.28% and Commerzbank is up 1.22%.
Mixed trading is being witnessed among the car manufacturers. Bayerische Motoren Werke, or BMW, is losing 0.35% and Daimler is down 1.22%. However, Volkswagen is trading in positive territory with a modest 0.35% gain.
The other major gainers include department stores operator Metro with 0.45% gain, and business software maker SAP with 0.20% rise.
Elsewhere in Europe, the UK's FTSE 100 is adding 0.22% and the French CAC 40 is rising 0.14%.
Across Asia/Pacific, all the majorr markets closed in the green. Australia's All ordinaries added 0.83% and China's Shanghai Composite Index gained 1.54%. Japan's Nikkei 225 surged 2.05% and India's BSE Sensex rose 1.86%.
The U.S. markets are closed for Labor Day holiday.
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