London-listed shares rose on Monday as data showing China’s factory deflation slowed in July brewed optimism around a post-pandemic economic rebound, while energy stocks tracked a jump in oil prices.
The commodity-heavy FTSE 100 was up 0.4%, with BP Plc and Royal Dutch Shell Plc the biggest boosts as oil rose 1%.
The mid-cap FTSE 250 gained 0.5%, led by industrial, consumer discretionary and financial stocks.
Fashion retailer Superdry jumped 8.6% after agreeing a new 70 million pound ($91.5 million) lending facility to get it through the coronavirus crisis.
Outsourcing group Capita Plc rose 1.9% as it said it had received an extension to its contract with Transport for London (TfL) from October 2021 to October 2026 for 355 million pounds ($464 million).
European shares inched higher on Monday as a decline in China’s producer prices slowed and oil prices rose, while investors looked to Washington for signs of more U.S. stimulus.
The pan-European STOXX 600 index rose 0.3% by 0712 GMT, kicking off a week that could see subdued trading activity as traders head out for summer holidays.
Sectors considered more sensitive to economic health such as banks .SX7P, oil and gas .SXEP and automakers .SXAP rose as data showed China’s factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels.
Shares in energy majors BP (BP.L), Royal Dutch Shell (RDSa.L) and Total (TOTF.PA) rose nearly 2% as crude prices gained after Saudi Aramco (2222.SE) raised optimism about Asian demandand Iraq pledged to deepen supply cuts.
French engineering company Spie (SPIE.PA) jumped 5.7% after a double upgrade to “buy” from Jefferies, while Dutch tech investor Prosus (PRX.AS) slid for a third day running as U.S. prepares ban on two popular Chinese apps, WeChat and TikTok.
Heavyweight sectors like technology .SX8P and healthcare .SXDP fell 1% and 0.4%, respectively, limiting gains in the broader market.