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European stocks gain as Asian markets rise

written by Bella Palmer
asian-markets

The DAX index traded 0.2% higher, the CAC 40 gained 0.3% and the FTSE 100 jumped 0.3%

European stock markets rose on Monday, boosted by a largely positive handover from Asia after last week’s strong US jobs report, with the new corporate earnings season drawing near.

At 07:05 GMT, the DAX index in Germany traded 0.2% higher, the CAC 40 in France gained 0.3% and the FTSE 100 in the U.K. jumped 0.3%.

The major European indices have started the new week on a positive note, boosted by gains in Asia, with Japan’s Nikkei leading the way with gains of 2%, on the back of the latest U.S. jobs report that exceeded expectations.

NFP data, released on Friday, showed the U.S. economy added 254,000 jobs in September, ahead of the almost 150,000 forecast.

This release has shifted the narrative from worries about a U.S. economic recession to the potential for a so-called "soft landing", a cyclical slowdown in economic growth that avoids the country going into recession.

In Europe, the economic news is less impressive, as German factory orders plunged 5.8% on the month in August, data showed earlier Monday, a significant deterioration from the previous month’s revised higher 3.9% gain.

The business climate in the German retail sector clouded over in September, as per an Ifo survey published on Monday.

Retailers assessed their current situation as slightly worse than in the previous month and are more pessimistic about the coming months, according to the survey.

However, Monday’s main release will be the latest eurozone retail sales data, as a guide for how the important consumer is holding up during these tricky times.

Retail sales are expected to have jumped 0.2% in August, a marginal improvement from the 0.1% gain the previous month.

ECB chief economist Philip Lane as well as board members Piero Cipollone and Jose Luis Escriva are all scheduled to speak later Monday, and are likely to follow President Christine Lagarde in hinting a brisk pace of further easing.

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