© Reuters
Investing.com – European stock markets edged higher Monday, continuing last week’s positive sentiment while investors digest mixed regional manufacturing data.
At 03:25 ET (07:25 GMT), the index in Germany traded 0.2% higher, the in France rose 0.2%, while the in the U.K. traded 0.2% higher.
The major European indices are continuing to trade higher, adding to Friday’s gains after the Federal Reserve’s fell more than expected in May, raising hopes that the U.S. may be less hawkish than feared in the run-up to the July rate-setting meeting.
German manufacturing PMI set to fall
The majority of the European economies are scheduled to release manufacturing PMI data this session, with the first out of the blocks, showing a slight deterioration in June, compared with the previous month, but not as bad as feared.
The manufacturing sector is set to remain in contraction throughout the region, with most eyes on Germany, the eurozone’s dominant manufacturing base. This is expected to show a release of 41.0 in June, a fall from 43.2 in May.
This should mean that gains are hard won Monday, especially as riots continued in France overnight, with President Emmanuel Macron forced to call off a state visit to Germany over the weekend.
Also of interest will be European Central Bank policymaker speaking at a financial conference, with the usually hawkish head of the Bundesbank likely to press the case for more hikes to combat inflation, which remains elevated in his country.
China’s manufacturing sector still in expansion territory
Helping the tone Monday was the release of a private survey showing that China’s manufacturing sector grew more than expected in June, with the coming in at 50.5 in June, above the expected 50.2 and the 50-point mark which separates growth from contraction.
That said, the reading still slowed from the 50.9 in May, adding to evidence that this crucial sector in the Chinese economy may be losing strength, especially as the showed last week that China’s factory sector shrank for a third straight month in June.
Oil seeking OPEC cues
Oil prices are marginally lower Monday after a strong close to last week, ahead of a meeting of oil industry executives with energy ministers from the Organization of Petroleum Exporting Countries and allies later this week.
While the forum is not a policy meeting, meaning that any changes to OPEC production are unlikely, it is still expected to offer cues to the oil market, amid growing fears of worsening demand this year.
By 03:25 ET, futures traded 0.5% lower at $70.28 a barrel, while the contract dropped 0.5% to $75.06.
Additionally, fell 0.3% to $1,923.55/oz, while traded 0.3% lower at 1.0881.