RTTNews - The European markets rose on Monday, as mining and energy stocks rallied on firmer copper and crude oil prices and banking stocks were boosted by earnings from HSBC and Barclays.
The benchmarks extended their gains after a report showed that spending on U.S. building projects unexpectedly rose in June. The U.S. Commerce Department said that construction spending rose 0.3% in June to a level of $965.7 billion. This followed a revised 0.8% slide in May. Economists had expected the figure to fall again during the month.
The Institute for Supply Management said its index of activity in the U.S. manufacturing sector rose to 48.9 in July from 44.8 in June, although a reading below 50 indicates a contraction. Economists had been expecting a more modest increase to a reading of 46.5.
Crude for September delivery rose $1.73 to $71.18 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 1.42% higher at 941.93 points, while the narrower DJ Stoxx 50 index rose 1.60% to 2,328.09 points.
Around Europe, the U.K.'s FTSE 100 index surged up 1.61% to 4,682.46, while France's CAC 40 index rose 1.50% to 3,477.80 and Germany's DAX index climbed 1.78% to 5,426.85.
Mining stocks rallied after copper prices rose to a 10-month high in London. BHP Billiton, the world's biggest miner, rose 4%, while Anglo American, the second biggest, surged up 4.1% and Rio Tinto, the third biggest, climbed 4.9%. Copper miner Antofagasta gained 5.3%.
Similarly, heavily weighted oil stocks gained after crude oil prices topped $70 a barrel. BP, Europe's biggest oil company, climbed 3% and Royal/Dutch Shell, the second biggest, rose 0.8%.
HSBC, Europe's largest bank, rallied 5% after the company reported a first-half pretax profit above analysts forecasts.
Barclays, Britain's third largest bank, jumped 7% after the company reported a 10% rise in first-half profit.
Shares of other banks also rose. BNP Paribas, France's largest bank, surged up 2.7% and Deutsche Bank, Germany's biggest lender, climbed 2.8%.
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