Europe open: Stocks rise early as manufacturing data beat forecasts
European stock markets opened with decent gains on Monday, kicking off the final quarter on a positive note after the US government narrowly avoided a government shutdown (for now) and a host of manufacturing surveys came in better than expected.
After an hour's trade, the Europe Stoxx 600 index was up 0.4% at 452.18, with the Dax up 0.5%, the Cac 40 up 0.7%, the Ibex 35 up 0.6% and the FTSE MIB just 0.1% higher.
"As it turns out a deal was struck over the weekend as Republican and Democrats kicked the can down the road and reset the clock for another 45 days until 17th November when we’re likely to have to go through the same political circus," said analyst Michael Hewson from CMC Markets.
"Nonetheless the fact that US lawmakers have bought themselves more time has come as a relief with markets in Europe set to open higher this morning," Hewson said in an email before the opening bell.
Investors were also likely reacting to a barrage of economic indicators across the European continent on Monday morning, including Eurozone manufacturing PMIs, the UK Nationwide house price index and minutes from the latest Riksbank policy meeting in Sweden.
Manufacturing PMIs across the board remained in negative territory, but improved more than expected in France, Spain and Italy, but worsened in Germany. Meanwhile, the UK manufacturing PMI was expected to remain unchanged.
In company news, BAE Systems shares rose after the defence giant signed a £4bn submarine contract for the Aukus security pact with Australia and the US.
French media group Vivendi was performing well after Barclays upgraded the stock to 'overweight'.