LONDON – European stocks advanced on Monday as international markets gear up for key US data releases, including the latest inflation reading.
The pan-European Stoxx 600 added 0.9% in early trade, with tech stocks climbing 2% to lead gains as most sectors and major bourses entered positive territory.
Dr. Martens shares climbed more than 8% after Barclays raised its target price for the British footwear brand’s stock.
At the bottom of the European blue chip index, Swedish investment company Storskogen Group fell 7%.
The positive start for European stocks came after markets closed lower last Friday after data showed the US economy added 390,000 jobs in May. US and European stocks slid as investors assessed the potential for rising interest rates as a result of the better-than-expected data.
The latest US inflation reading at the end of the week will be a key focus for investors. May’s consumer price index in the US is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.
The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.
US stock futures climbed in early premarket trade on Monday, looking to rebound after a losing week as investors continued to bet that the Federal Reserve will tighten monetary policy aggressively to combat surging inflation. Meanwhile, shares in Asia-Pacific were mixed Monday as a private survey showed another contraction in China’s service sector activity for May.
Attention in the UK on Monday will turn to domestic politics, with Prime Minister Boris Johnson facing a vote of confidence from members of his Conservative party amid growing dissatisfaction in his leadership.
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