European stocks mostly rose on Monday


Germany's DAX and France's CAC 40 closed marginally higher, while Spain's IBEX 35 and Italy's FTSE MIB rose 0.9% and 0.8%, respectively. The British FTSE 100 Index fell 0.08%.

Mining companies Rio Tinto and BHP Group rose 1.9% and 1.6%, respectively, on the back of higher iron ore prices.

BP Plc and Total SA gained 0.7%. Oil prices rose sharply on Monday after the cyberattack on the US Colonial pipeline, but then declined and closed just above the previous session's close. Truck maker MAN SE shares soared 29%. The German heavy truck and bus manufacturer Traton SE, a division of Volkswagen AG (VW), has offered to buy back its non-MAN shares at a price of 70.68 euros per share. Traton's share in MAN is currently 94.36%. Traton shares are up 5.9%.

Centrica (LON: CNA) Plc lost almost 2%. The British energy company said the coronavirus pandemic continues to have a negative impact on its business and is therefore unable to forecast its financial performance for 2021.

Societe Generale SA shares gained 2.9%. The French bank said it plans to change the allocation of capital in its investment division in favor of financing, consulting and operational services to clients and reduce its dependence on market fluctuations.

A positive background for stock markets is created by expectations of maintaining a soft monetary policy both in the US and in Europe, given the insufficient pace of economic recovery.

Thus, the chief economist of the European Central Bank (ECB) Philip Lane said in an interview with the French newspaper Le Monde that the GDP of the eurozone is likely to return to the 2019 level only in the second quarter of 2022, and unemployment will decrease to the levels of the year before last only in 2023.

Meanwhile, analysts said Friday's weak US labor market data could mean delaying any talk of a cut in stimulus until a recovery in employment is more evident.

The material has been provided by InstaForex Company -