European Stocks Close Higher

FRANKFURT, July 2 (Bernama-dpa-AFX) -- European stocks closed higher on Monday with investors reacting positively to the results of the first round of France's parliamentary election, reported dpa-AFX news. 

A survey showed the downturn in the eurozone's manufacturing sector wasn't as bad as initially feared in June, contributing to the market’s positive sentiment. 

Germany's consumer price inflation data and the report on UK manufacturing activity also supported the markets.

The euro hit its strongest level since mid-June and the premium investors’ demand for holding France's bonds plunged, as the prospect of French political gridlock helped ease concerns about further strains on the country's public finances.

The HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, came in at 45.8 in June - ahead of a 45.6 preliminary estimate.

Germany's consumer price inflation slowed faster than expected in June amid a steeper year-on-year decline in energy prices and the core figure eased to its lowest in about two-and-a-half years, while services inflation proved sticky for another month, suggesting it is not yet time for policymakers at the European Central Bank to drop their guard.

The British manufacturing sector continued to expand in June as output and new orders rose for the second straight month. The manufacturing purchasing managers' index dropped to 50.9 in June from 51.2 in May. However, a reading above 50 indicates expansion. The flash reading was 51.4.

UK house prices increased at a slower pace in June as housing affordability remained stretched, mortgage lender Nationwide said.

Year-on-year, house prices posted a growth of 1.5 per cent in June after rising 1.3 per cent in May. The pan European Stoxx 600 climbed 0.32 per cent. Germany's DAX gained 0.3 per cent, and France's CAC 40 ended 1.09 per cent up. The U.K.'s FTSE 100 edged up 0.03 per cent, while Switzerland's SMI closed up 0.47 per cent.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Norway, Portugal, Russia, Spain and Sweden ended higher.Netherlands, Poland and Turkiye closed weak.

--BERNAMA-dpa-AFX