European stocks maintained their upward trajectory on Monday, with the FTSE 100 and other major indices in the region closing higher. This positive performance came as the US manufacturing sector reported growth for the second consecutive month in June, as indicated by the S&P Global PMI, which rose to a three-month high of 51.6, up from 51.3 in May.
French stocks were particularly strong during the session, buoyed by investor speculation following the first round of the country’s parliamentary elections. The CAC index, which had recently hit its lowest point since January, rebounded as France’s far-right alliance secured a significant victory. This development placed Marine Le Pen’s party in a position where forming France’s first far-right government is a real possibility.
The euro strengthened against the US dollar, climbing 0.55% to reach $1.0771, its highest level in over two weeks. In London, the FTSE 100 closed 0.3% higher, while Germany’s DAX increased by 0.5%. The CAC in Paris saw a notable gain of 1.5%, with most sectors across the board showing solid performance. The pan-European STOXX 600 index also rose by 0.5%.
Meanwhile, Wall Street had a mixed day as American factory activity continued to shrink in June for the third consecutive month. The pound slightly dipped against the US dollar, down 0.1% at 1.2639. Despite high mortgage rates, UK house prices showed resilience, registering an increase in June.
European markets outperformed their American counterparts, reflecting growing investor confidence in the region despite ongoing economic uncertainties.
JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
