RTTNews - The European markets rose for the second day on Monday, as energy and mining stocks rallied after crude oil and copper prices climbed.
In economic news, the U.S. Commerce Department said in its report that personal income increased by 0.5% in April following a revised 0.2% decrease in March. The increase surprised economists, who had expected income to fall by 0.2% compared to the 0.3% decrease originally reported for the previous month.
At the same time, the U.S. Commerce Department said that personal spending edged down 0.1% in April after falling by a revised 0.3% in the previous month. Economists had expected the drop in personal spending to match the 0.2% decrease originally reported for March.
The U.S. Commerce Department also said that construction spending increased by 0.8% to an annual rate of $968.7 billion in April following a revised 0.4% increase in March. Economists had expected spending to decrease by about 0.8%.
The Institute for Supply Management in the U.S. said its index of activity in the manufacturing sector rose to 42.8 in May from 40.1 in April, with a reading below 50 indicating a contraction. Economists had been expecting the index to edge up to a reading of 42.0.
China's purchasing managers' index posted a score of 53.1 in May, the China Federation of Logistics and Purchasing said, easing from 53.5 in April.
General Motors Corp., once the world's largest automaker, filed for bankruptcy protection today.
Crude for July delivery rose $1.34 to $67.65 a barrel on the New York Mercantile Exchange, by the time the European markets closed, on a weak dollar and new data suggesting manufacturing in China has strengthened.
The FTSEurofirst 30 index of pan-European blue chips closed 2.80% higher at 886.27 points, while the narrower DJ Stoxx 50 index rose 2.88% to 2,186.07 points.
Around Europe, the U.K.'s FTSE 100 index rose 2.00% to 4,506.19, while France's CAC 40 index surged up 3.11% to 3,379.49 and Germany's DAX index climbed 4.08% to 5,142.56.
Heavily weighted oil stocks rallied after crude oil prices climbed to seven month high. BP, Europe's biggest oil company, surged up 2.7%, while Royal/Dutch Shell, the second biggest, rose 1.7% and Total, the third biggest, climbed 2.9%.
Similarly, mining stocks gained after copper prices rallied in London. BHP Billiton, the world's biggest miner, rose 5.3%, while Anglo American, the second biggest, climbed 7.5% and Rio Tinto, the third biggest, surged up 6.5%. Copper miner Antofagasta gained 5.9%.
Peugeot, France's biggest carmaker, rallied 9.6% after Credit Suisse raised its share-price estimate on the stock to 26 euros from 18 euros. Daimler, the world's second biggest maker of luxury cars, surged up 8.4%, as Bank of America Corp. added the shares to its Europe 1 list.
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