Although markets are mainly closed today and volume shares were in thin trading as several major markets including the UK and New York are closed for the New-Year holiday, some European indices were open for trade and moved higher.
In the first trading session of 2017, France’s CAC 40 gained 0.6 percent, while Germany’s DAX 30 gained 0.9 percent and Italy’s FTSE MIB climbed to 1.3 percent. The Stoxx Europe 600 increased by 0.6 percent, also the dollar index increased on Monday, extending its rally into 2017.
The FTSE MIB had finished down by 10 percent in 2016 upon increased concerns over the troubled issues of the banking system in the country.
European stocks rallied, pulling back losses after Italy posted a better than expected manufacturing PMI of 53.2 in December compared to a 52.2 in November, its highest reading since June, which has confirmed better manufacturing trend in the euro zone.
The Eurozone’s manufacturing has ended 2016 with a surge production to enter 2017 strong, its hit its best reading since April 2011.
Data Firm IHS Markit said its Purchasing Managers Index for the Eurozone rose to 54.9 in December from 53.7 in the previous month, equivalent with an initial estimate. A reading above 50.0 indicates an expansion in activity and vice versa.
In European equities, energy stocks were trading uneven as French oil and gas major Total SA (PA:TOTF) slumped 0.11 percent while Italy’s ENI (MI:ENI) gained 0.84 percent and Norwegian rival Statoil (OL:STL) slipped 0.32 percent.
Financial stocks were mostl higher as French Lenders BNP Paribas (PA:BNPP) lost 0.13 percent and Societe Generale (PA:SOGN) increased 0.42 percent while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) traded up 3.16 percent and 2.06 percent, respectively.
Oil markets and U.S. equities remained closed on Monday.
Some expect bullish global stocks in 2017 on hopes for stronger economic growth. Analysts at U.S. Bank Wealth Management expect the S&P 500 to surge 7 percent after a 9.5 percent hike last year.
In Europe, a weaker Euro and continued easy monetary policy from the European Central Bank are also expected to support equity markets.