European markets rise as traders assess possible rate cuts, fresh PMI data

European markets advanced Monday as traders continued to assess the possibility of rate cuts after softer-than-expected U.S. jobs data.

Lynk Lynk
May 6, 2024 - 21:06
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European markets rise as traders assess possible rate cuts, fresh PMI data

LONDON — European markets advanced Monday as traders continued to assess the possibility of rate cuts after softer-than-expected U.S. jobs data.

The French CAC 40 was up 0.5%, the German DAX was also higher by 1% and the Italian FTSE MIB was up 1%. The U.K.'s FTSE 100 was closed Monday for a public holiday and trading volumes were expected to be light.

Friday's U.S. nonfarm payrolls report showed 175,000 jobs were added in April, below the 240,000 jobs expected by economists surveyed by Dow Jones.

The unemployment rate edged up to 3.9% from 3.8% in the prior month, according to the Bureau of Labor Statistics. Wage figures also came in lower than expected, an encouraging sign for inflation.

In Europe Monday, a S&P composite final purchasing managers' index for the euro zone was released showing business activity in the bloc expanded at its fastest pace in almost a year. The index jumped to 51.7 for April, from 50.3 in March.

In individual stocks news, share of the e-commerce and mail firm PostNL sank 4.6% after reporting a first-quarter earnings loss. Volvo Cars saw a 1% pop after posting an annual 27% sales rise for the month of April.

— CNBC's Samantha Subin and Pia Singh contributed to this report.