European stocks end higher on UK policy

The UK composite PMI fell to 47.2 in October, the lowest level in 21 months, as Capital Economists pointed to a “firm recession” in the country.

European stock markets posted gains on Monday, the 24th. The picture was positive from the start of the day, supported by China’s indicators, and even weak local data did not spoil the mood. The move was boosted after news that former UK Chancellor of the Exchequer Rishi Sunak is set to become the new Prime Minister, overcoming infighting in the Conservative Party.

The pan-European Stoxx 600 index rose 1.40% to close at 401.84 points. China’s GDP rose 3.9% year-over-year in the third quarter, above the 3.5% forecast by analysts polled by the Wall Street Journal.

China’s exports beat expectations in September but imports disappointed, while industrial production rose in September but retail sales came in lower than expected.

In European markets, the China data series was well received. In the region itself, S&P Global’s preliminary reading of the euro zone composite purchasing managers’ index (PMI) fell to 47.1 in October, a 23-month low.

The UK composite PMI fell to 47.2 in October, the lowest level in 21 months, as Capital Economists pointed to a “firm recession” in the country. Oxford Economics, on the other hand, in its assessment of euro zone PMIs, said data suggested local economic weakness would continue into the fourth half.

However, on Monday, indicators did not deviate from the search for stocks, supported by data from China. The news of Sunak as the next prime minister added momentum. The deVere Group believes the news could bring a period of relief, but says it should be short-lived, as the country faces a potential recession and other problems such as the energy sector and high inflation.

• On the London Stock Exchange, the FTSE 100 index rose 0.64% to close at 7,013.99 points.
• In Frankfurt, the DAX index rose 1.58% to 12,931.45 points.
• On the Paris Stock Exchange, the CAC 40 index rose 1.59% to 6,131.36 points.
• In Milan, the FTSE MIB index rose 1.93% to 21,982.95 points.
• On the Madrid Stock Exchange, the IBWX 35 index rose 1.79% to 7,680.50 points.
• The Lisbon Stock Exchange’s BSI index rose 1.30% to close at 5,563.32 points.

With information from the state agency