Europe close: Global manufacturing PMIs buoy stocks

Positive news on factory sector activity in the euro area and from further afield buoyed stocks amid light trading conditions ahead of the 4 July holiday in the States, which meant many traders were away from their desks.

At the closing bell the benchmark Stoxx 600 was up by 1.06% or 4.04 points at 383.41, alongside a gain of 1.22% or 150.19 points for Germany's Dax taking it to 12,475.31 and a 1.47% or 75.04 point rise in the Cac-40 to 5,195.72.

Banks were among the best performers, with the Stoxx 600 sector gauge up by 2.64% to 187.11.

Shares in Basic Resources firms were also trading on the front front, with the subindex tracking them rising 3.14% to 399.46 thanks to upbeat manufacturing data out of China overnight.

The single currency was down by 0.50% to 1.1366 alongside.

A stronger tone in oil markets was also providing a favourable tailwind for stocks.

Front month Brent crude oil futures were up by 1.34% to $49.43 on the ICE, rising for an eighth consecutive day. That came as data released by Baker Hughes on 30 June revealed the first drop in 24 weeks in the US oil rig count.

The numer of rigs operating in the States declined by two to 756.

Acting as a backdrop, overnight Caixin's China manufacturing sector purchasing managers index printed at 50.4, versus a reading of 49.6 for May (consensus: 49.8).

Eurozone factory activity hit a 74-month high in June, revised survey data from Markit revealed.

Its purchasing managers' index for Eurozone manufacturing firms rose from a reading of 57.0 for May to 57.4 in June (preliminary: 57.3).

Euro area unemployment held at 9.3% in May - its lowest level since march 2009 - which was in-line with forecasts.

Danone was higher after the company said it sold Stonyfield, one of its US dairy subsidiaries, for $875m or 20 times the company's EBITDA.