BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - German stocks rallied on Monday after the United States and China reached a temporary trade truce, helping outweigh mixed regional data.
The U.S. agreed to put off additional tariffs on Chinese goods indefinitely while removing some curbs on Huawei Technologies Co. buying high-tech equipment from the U.S. In response, China said it would buy large amounts of American farm products.
On the data front, factory activity in the euro zone shrank faster last month than previously thought, a survey showed, adding to the pressure on the European Central Bank to ease its monetary policy.
IHS Markit's June final manufacturing PMI came in at a three-month low of 47.6, below an earlier flash reading of 47.8 and May's 47.7.
Elsewhere, Germany's unemployment decreased less-than-expected in June after a strong increase in the previous month, preliminary data from the Federal Employment Agency showed.
The seasonally adjusted number of unemployed persons fell by 1,000 after a 60,000 increase in May, which was the first rise in nearly two years. Economists had forecast a fall of 3,000.
The jobless rate was 5 percent in June, unchanged from May, and in line with economists' expectations.
Investors shrugged off data showing that Chinese manufacturing activity contracted for the first time in four months in June on trade disputes.
The benchmark DAX was up 161 points or 1.30 percent at 12,558 after rallying 1 percent on Friday.
Deutsche Bank shares jumped 2 percent on a Wall Street Journal report that the lender is considering cutting up to 20,000 jobs or more than one in six full-time positions globally.
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