By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved higher on
Monday as investors digested the latest round of PMI data from
China and the euro zone, but stayed cautious ahead of the U.S.
Federal Reserve meeting coming later in the week.
The Stoxx Europe 600 index gained 0.3% to 310.81, after closing
lower for a second straight week on Friday.
Among notable movers, shares of Aggreko PLC rallied 6.2% after
the temporary-power provider said it expects full-year results to
be ahead of expectations.
H&M Hennes & Mauritz AB (HNNMY) climbed 2.5% after the
Swedish fashion retailer said sales rose 21% in November in local
currencies.
On a more downbeat note, mining firms were on the decline after
data showed growth in China's manufacturing-sector activity slowed
to a three-month low in December. The "flash" HSBC/Markit
purchasing manager's index eased to 50.5 from November's 50.8.
Shares of Anglo American PLC dropped 1.3%, BHP Billiton PLC
(BHP) fell 0.9% and Rio Tinto PLC (RIO) lost 0.5%.
PMIs were in the spotlight in Europe, where data showed growth
in the euro zone's manufacturing sector was at the highest in 31
months. On a country level, the manufacturing PMI in France slipped
to a seven-month low, but rose to a 30-month high in Germany.
"The rise in the PMI after two successive monthly falls is a big
relief and puts the recovery back on track. The upturn means that,
over the final quarter, businesses saw the strongest growth since
the first half of 2011, and have now enjoyed two consecutive
quarters of growth," said Chris Williamson, chief economist at
Markit, about the euro-zone figure.
Investors were hesitant of placing any big positions ahead of
the U.S. Federal Open Market Committee meeting on Tuesday and
Wednesday. Analysts are divided as to whether the central bank will
start tapering its $85-billion-a-month asset purchases, after a
string of solid U.S. economic data and after last week's budget
deal in Washington cleared a major hurdle to financial stability.
The FOMC's decision is due Wednesday after European markets
close.
U.S. stock futures pointed to a lower open on Monday.
In Europe, Germany's DAX 30 index gained 0.3% to 9,035.19, and
France's CAC 40 index added 0.2% to 4,069.90. The U.K.'s FTSE 100
index rose 0.1% to 6,447.47.
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