BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed higher as stocks moved up in thin holiday trade on Monday, with investors reacting positively to U.S. President Donald Trump's comments on Friday that did not contain any threat of tariff hikes on China.
Markets also cheered data showing China's manufacturing activity to have expanded in May. Gradual reopening of the economies after a prolonged period of lockdown due to the coronavirus pandemic contributed as well to markets' uptick.
The French government has decided to allow bars, restaurant and beaches to reopen and to lift some travel restrictions from this week.
Data from IHS Markit showed the downturn in the euro area manufacturing sector eased noticeably in May as companies restarted work. The manufacturing Purchasing Managers' Index improved to 39.4 in May from April's record low of 33.4. The flash reading was 39.5. Germany recorded the lowest PMI of all countries, followed by Spain.
The U.K. manufacturing sector activity contracted as expected in the month of May, the final report from IHS Markit revealed with a score of 40.7.
The pan European Stoxx 600 moved up 1.1%. The U.K.'s FTSE 100 gained 1.48% and France's CAC 40 ended stronger by 1.43%. Markets in Germany and Switzerland were closed for Whit Monday holiday.
Among other markets in Europe, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkey closed with sharp to moderate gains.
In the U.K. market, Standard Chartered soared 8.7%. Pearson gained 8.4% and Carnival spurted 7.3%. Associated British Foods climbed up 8.3% after the company said Primark is currently trading in 112 stores which represent 34% of its total selling space. The number is set to rise to 281 stores from June 15.
IAG, Informa, WPP, Next, Glencore, Royal Bank, Legal & General, ITV, Barclays, Taylor Wimpey, Flutter Entertainment, Prudential and EasyJet ended stronger by 4 to 6%.
In France, Unibail Rodamco spurted more than 10%. Publicis Groupe surged up 8.1%, while Technip and Renault moved higher by 6.6% and 5.9%, respectively.
Airbus, ArcelorMittal, Peugeot, Societe Generale, Sodex, BNP Paribas, Safran and Credit Agricole gained 2.5 to 5%.
Shares of fashion brand Ted Baker ended with a hefty gain after the company unveiled plans to raise 95 million pounds by selling new shares.
Copyright RTT News/dpa-AFX