On Monday, the Euro Stoxx 50 Index grew 0.6% with the UK and Swiss markets closed for holidays. In Germany, the region’s biggest economy, the DAX Index increased 1% in its best day since mid-December.
Italy’s FTSE MIB also jumped 1.7% on Monday with Data showing that the country’s manufacturing PMI rose to 53.2 for December vs. 52.2 in November 2016. The FTSE MIB had ended 2016 down 10%, due to political uncertainties and investor concerns over the country’s banking system.
According to Stephane Barbier de la Serre, a strategist at Makor Capital Markets in Geneva interviewed by Reuters, the consensus for Europe’s economic growth this year is very cautious, which means any positive surprises in macroeconomic data may spur further gains in Stocks. As for Germany, Shares were led by gains in lender Commerzbank AG and carmaker Volkswagen AG with a report showing that manufacturing PMI reached 55.6 in December which is the highest since January 2014.
The broader Stoxx Europe 600 Index climbed 0.5%, after slipping 1.2% in 2016, when it underperformed the S&P 500 Index. The US benchmark gained 9.5% from 2015, with US markets closed on Monday for the end-of-year holidays.