Europe’s main stock markets experienced gains on Monday, buoyed by significant increases in Chinese equities, as trading enters a typically challenging month for Wall Street.
Hong Kong’s Hang Seng Index surged 2.2%, driven by Alibaba’s share price, which jumped nearly 20% due to impressive results, including a notable rise in AI revenue.
Support for Chinese equities also stemmed from official data indicating a slight uptick in factory output for August, analysts noted.
The Purchasing Managers’ Index, a vital gauge of industrial output, rose to 49.4, a modest increase from July’s 49.3.
Nevertheless, this marks a fifth consecutive month of contraction, as growth is only indicated by figures above 50.
In Europe, London and Frankfurt stock markets posted gains, while Paris remained flat amid political unrest over disputed budget proposals.
Wall Street was closed on Monday for Labor Day, with the dollar showing mixed performance against its major counterparts.
“Stocks typically underperform this month on both sides of the Atlantic,” stated Kathleen Brooks, research director at XTB trading group.
The market’s shift began late last week, following disappointing results from AI chip giant Nvidia and a significant selloff in European and US stock markets.
Wall Street pulled back from record highs on Friday after a key US inflation report accelerated, reducing the likelihood of sustained interest rate cuts by the Federal Reserve in the near future.
Additionally, a US appeals court ruled that many of President Donald Trump’s tariffs, which have disrupted global trade, were illegal, but allowed them to remain in effect for now, giving him time to appeal to the Supreme Court.
– Key figures at around 1045 GMT –
London – FTSE 100: UP 0.1% at 9,198.91 points
Paris – CAC 40: FLAT at 7,705.31
Frankfurt – DAX: UP 0.3% at 23,975.42
Tokyo – Nikkei 225: DOWN 1.2% at 42,188.79 (close)
Hong Kong – Hang Seng Index: UP 2.2% at 25,671.78 (close)
Shanghai – Composite: UP 0.5% at 3,875.53 (close)
New York – Dow: DOWN 0.2% at 45,544.88 (close)
Euro/dollar: UP at $1.1722 from $1.1693 on Friday
Pound/dollar: UP at $1.3525 from $1.3507
Dollar/yen: UP at 147.11 from 147.01 yen
Euro/pound: UP at 86.68 pence from 86.56 pence
Brent North Sea Crude: UP 0.8% at $68.04 per barrel
West Texas Intermediate: UP 0.9% at $64.60 per barrel
