European stocks risk-on rally loses steam post-UK PMI

The European markets set-off a brand new week on a stronger footing, climbing higher in tandem with the banking stocks in response to weekend’s positive stress tests results. While better-than expected Chinese Caixin manufacturing PMI gauge also lifted the sentiment around the European stocks.

In the month of July, European equities booked the biggest monthly gains since October as the stocks almost reversed post-Brexit losses. The region’s indices headed towards fresh monthly highs this Monday, as markets also cheered above estimates Euro area manufacturing PMI releases.

However, over the last hour, the European indices are seen paring gains, as poor UK manufacturing PMI report appears to have weighed down on the investors’ minds. The report showed 48.2 points for the manufacturing sector, while markets had predicted 49.1 points.

Currently, Germany's DAX 30 index trades +0.58% higher at 10,396, while the UK's FTSE index trades +0.19% at 6,735. Among other European indices, the French CAC 40 index gains 0.07% to 4,443, while the pan-European Euro Stoxx 50 index rises +0.10% to 2,989 points.