Europe close: Stocks rally ahead of GDP data; Sentix survey shows rise

European stocks rallied to close higher at the start of the week as investors eyed inflation figures across the world this week and digested Friday’s US jobs report.

The pan-European Stoxx 600 finished 0.09 higher at 459.68, with major bourses mixed. Inflation data is due from the US Germany and China this week.

“US stock market futures are a touch higher this morning, as investors prepare for another week of corporate earnings and a fresh round of inflation data,” said Matt Britzman, equity analyst at Hargreaves Lansdown.

“Last Friday’s jobs read showed lower jobs growth than economists had predicted, given a small indication that tightening measures are starting to yield some results.”

“Softening inflation reads this week could help push the Fed in favour of more patience, which would likely be met by a positive reaction from stock markets.”

In economic news, investor morale in the eurozone unexpectedly rose in August, ending three consecutive months of decline, but there were no signs of a lasting turnaround in sentiment, according the the Sentix survey.

Its index for the single-currency bloc rose to -18.9 points in August from -22.5 in July, beating expectations of a further drop, to -24.3.

In equity news, Siemens Energy fell, saying problems at its wind turbine unit would cost it €2.2bn.

Deutsche Boerse fell after UBS downgraded the German bourse operator to ‘neutral’ from ‘buy’.

Scout24 surged as Jefferies maintained a ‘buy’ rating on the German online marketplace operator and the company raised its full-year guidance,

Reporting by Frank Prenesti for Sharecast.com