RTTNews - The European markets rose for the third day on Monday, as banking and mining stocks rallied on optimism of a global economic recovery.
A report showing stronger-than-expected recovery in Eurozone industrial new orders indicate that the economy is clearly moving away from recession.
Industrial new orders in the 16-nation bloc increased 3.1% month-on-month in June, after falling 0.5% in May, the Eurostat reported today. Growth in June far exceeded the expected 1.7% rise. The new orders for May was revised from the 0.2% fall reported initially.
Crude for October delivery rose $0.59 to $74.48 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index f pan-European blue chips closed 0.86% higher at 975.19 points, while the narrower DJ Stoxx 50 index rose 0.65% to 2,403.26 points.
Around Europe, the U.K.'s FTSE 100 index rose 0.93% to 4,896.23, while France's CAC 40 index surged up 1.01% to 3,652.17 and Germany's DAX index 1.04% to 5,519.75.
Economic sensitive banking stocks were among the top gainers. Royal Bank of Scotland, Britain's second largest bank, climbed 6.8%, while Lloyds Banking Group, Britain's biggest mortgage lender, surged up 6.3% and Deutsche Bank, Germany's largest bank, rose 3.1%. Credit Agricole, France's second largest bank, gained 2.4%.
Mining stocks rallied after metal prices advanced. BHP Billiton, the world's biggest miner, surged up 3.6%, while Anglo American, the second biggest, rose 2.9% and Rio Tinto, third biggest, climbed 4.9%. Copper miner Antofagasta gained 4.3%.
Similarly, heavily weighted oil stocks edged higher after crude oil prices rose. BP, Europe's biggest oil company, added 0.2%, while royal/Dutch Shell, the second biggest surged up 0.7% and Total, the third biggest, climbed 0.8%.
Swiss textiles machinery maker Sulzer rose 2.3% after the company reported first-half profit that beat analysts' estimate.
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