European Shares Gain On Fed, China Optimism

European stocks advanced on Monday as hopes of Fed rate pause and the announcement of new Chinese stimulus measures helped investors shrug off weak economic data from Germany and the euro zone.

The dollar slipped in thin holiday day after mixed U.S.jobs data released on Friday suggested the Federal Reserve is done with raising interest rates.

In economic releases, a survey showed the Eurozone Sentix Investor Confidence Index fell to -21.5 in September from -18.9 in August – a level not seen since Europe’s energy crisis last November.

Separate data showed that Germany’s trade surplus declined more than expected in July on weak exports and rising imports, exacerbating the possibility of economic contraction in the third quarter.

Exports posted a monthly decline of 0.9 percent in July, in contrast to June’s 0.2 percent increase. On the other hand, imports grew 1.4 percent, reversing a 3.2 percent drop in June.

The pan-European STOXX 600 climbed 0.8 percent to 461.56 after closing marginally lower on Friday.

The German DAX rose 0.6 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both were up around 0.7 percent.

Gains in iron ore future prices helped lift miners, with Antofagasta, Anglo American and Glencore rising 1-3 percent.

Medivir AB jumped 7.6 percent in Sweden after the pharmaceutical company released promising interim data, including a first complete response in phase 1b/2a HCC study with fostrox in combination with Lenvima in advanced hepatocellular carcinoma.

Swiss food and beverage giant Nestle SA edged up slightly after announcing the divestment of its peanut allergy treatment business, Palforzia, to Stallergenes Gree.

British oilfield services firm John Wood rose about 1 percent after signing a partnership deal with Harbour Energy.

Budget airline Wizz Air Holdings jumped 3.7 percent after unveiling passenger traffic figures for August.

Novo Nordisk climbed 1.6 percent after the Danish drug maker launched its weight-loss injection Wegovy in Britain.

Source: Read Full Article