European stocks generally pushed modestly higher on Monday, tracking gains in the U.S., although weakness in financial stocks helped drag down the Italian benchmark.
Trading is expected to be light given that U.K. markets are closed for a holiday.
What are markets doing?The Stoxx Europe 600 SXXP, +0.20% rose 0,3%, after gaining 0.7% last week for its first weekly gain in a month. However, the pan-European gauge is down 2.1% this down and 1.4% so far this year.
Germany’s DAX 30 DAX, +0.36% advanced 0.4%, after climbing 1.5% last week, while France’s CAC 40 PX1, +0.32% added 0.4% as well, after rising 1.6% last week. Italy’s FTSE MIB I945, -0.22% was off 0.3%.
The U.K market is closed; the FTSE 100 UKX, +0.19% rose 0.25% last week.
The euro EURUSD, -0.0516% was little changed at $1.1617, compared with $1.1622 late Friday in New York.
What is driving the market?European stocks continue to get a lift from Federal Reserve Chairman Jerome Powell’s remarks on Friday that affirmed the U.S. central bank would continue its strategy of gradually normalizing its monetary policy. Both the S&P 500 SPX, +0.62% and Nasdaq Composite COMP, +0.86% closed at records, as U.S. stock benchmarks are poised to produce the best August returns in four years. U.S. markets were on track to post further gains on Monday.
Germany’s Ifo report showed stronger-than-expected business confidence, despite the continuing rumblings over trade wars and tariffs with the U.S. Europe’s largest economy is “performing robustly.” The business climate index jumped to 103.8 in August from 101.7 in July and besting a forecast of 101.9. It was the first increase since November and pushed the index to its highest level since February.
Turkish markets reopened following a holiday, and the lira USDTRY, +2.3523% once again weakened.
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Stock moversShares of struggling German retailer Metro AG B4B3, +5.06% B4B, +14.32% B4B3, +8.22% led the day’s gainers, surging 15% as one of the midcap company’s largest shareholders said it was in talks to sell most of its 10% stake to an investor group. Ceconomy’s CEC, +4.37% announcement comes after another shareholder, the Haniel investment group, on Friday said it would sell a 7.3% stake to the same investor group led by Czech billionaire Daniel Kretinsky.
Lundin Petroleum LUPE, +3.95% is up 4%. The company owns 22.6% of the Johan Sverdrup oil field, the largest discovery in the North Sea in more than three decades. An update issued Monday says it will deliver more oil and be cheaper to develop than previously forecast. Shares in Equinor EQNR, +0.93% the largest investor in the oil field, were up just 0.7%. Lundin also announced much higher resource estimates for another, smaller North Sea site in which it has a 50% working interest.
Italian banks were among the largest decliners, led by Julius Baer BAER, -1.97% and UniCredit UCG, -0.79% each down around 1%.
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