Europe open: Stocks edge higher as investors digest China data
European stocks edged higher in early trade as investors weighed up disappointing Chinese trade data against rising expectations of an interest rate hike by the Federal Reserve this year.
At 0850 BST, the benchmark Stoxx Europe 600 index was up 0.4%, Germany’s DAX was up 0.8% and France’s CAC 40 was 0.5% higher.
At the same time, oil prices were firmer. West Texas Intermediate was up 1.1% at $42.27 a barrel and Brent crude was 1.1% stronger at $44.74.
According to data released earlier by the General Admission of Customs, exports in the world’s second-largest economy fell 4.4% in July, while imports declined 12.5%.
At the same time, investors were mulling over Friday’s strong non-farm payrolls report, which has been seen as many as increasing the chances of a rate hike from the Federal Reserve this year.
CMC Markets’ Michael Hewson said: “Certainly the odds have gone up that we could get a move, which suggests that this month’s Jackson Hole Symposium on 26 August is likely to be a key bellwether for the Fed’s appetite for a move higher, or whether the lack of inflation could stay there hand.”
Corporate news was thin on the ground on Monday.
Dutch postal service PostNL rallied after well-received second-quarter results and confirmation of its outlook.
Barclays racked up healthy gains as Exane BNP Paribas upgraded the stock to ‘outperform’ from ‘neutral’ saying it remained its preferred large UK bank.
On the downside, Airbus was under pressure as the UK’s Serious Fraud Office launched an investigation into allegations of fraud, bribery and corruption at the company.
Shire edged lower after the drug maker confirmed its strong performance so far in 2016, as it completed two acquisitions and continued to grow its underlying business.