European stocks experienced a modest rise on Monday, as the euro reached its peak value since mid-June and the risk premium for holding French bonds significantly dropped. This development alleviated concerns about additional stress on France's public finances due to potential political stalemate.
Further bolstering investor confidence, a recent survey indicated that the decline in the eurozone's manufacturing sector was milder than initially anticipated in June. According to S&P Global’s final eurozone manufacturing Purchasing Managers' Index (PMI), compiled by HCOB, the index stood at 45.8 in June, surpassing the preliminary estimate of 45.6.
The pan-European STOXX 600 increased by 0.3 percent to 512.90, recovering from a 0.2 percent drop on Friday. Germany's DAX edged up by 0.2 percent, the U.K.'s FTSE 100 rose by 0.3 percent, and France's CAC 40 saw a significant rally of 1.3 percent.
French banks, including BNP Paribas, Credit Agricole, and Societe Generale, surged by 3-4 percent as the initial round of voting indicated that Le Pen's National Rally would likely not secure a parliamentary majority.
Valneva saw a 5.2 percent increase after the European Commission granted marketing authorization for its chikungunya vaccine, IXCHIQ, for individuals aged 18 and older.
Airbus climbed nearly 2 percent following a binding term sheet agreement with Spirit AeroSystems concerning a potential acquisition of key Airbus activities.
Nestle gained approximately 1 percent amid reports predicting stable growth with positive contributions from volume and product mix throughout the second quarter and the remainder of the year.
Conversely, mining giant Anglo American fell nearly 3 percent in London. The company suspended production at the Grosvenor steelmaking coal mine in Queensland, Australia, due to an underground coal gas ignition incident.
Petrofac jumped 4.5 percent after announcing an extension of the existing forbearance agreement with its noteholders. The extension, concerning the non-payment of interest on senior secured notes, now extends from June 30 to July 25, 2024.
