Europe Markets

European markets close mixed as investors weigh inflation and monetary policy; Victrex climbs 7%

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Key Points
  • The pan-European Stoxx 600 ended the session slightly above the flatline on the first trading day of the week, with basic resources stocks jumping 2.2% while tech stocks fell 1.4%.
  • A far-weaker-than-expected April jobs report, which showed that U.S. employers added 266,000 net payrolls last month, spurred expectations that interest rates would stay lower for longer.

LONDON — European stocks closed mixed on Monday as investors weighed the prospect of lower interest rates for longer on the back of subsiding inflationary pressures.

The pan-European Stoxx 600 ended the session slightly above the flatline on the first trading day of the week, with basic resources stocks jumping 2.2% while tech stocks fell 1.4%.

Stateside, the Dow Jones Industrial Average climbed to a record high on Monday, driven strong gains among energy stocks, building on last week's momentum. Both the Dow and the S&P 500 hit fresh all-time highs on Friday.

A far-weaker-than-expected April jobs report, which showed that U.S. employers added 266,000 net payrolls last month, spurred expectations that interest rates would stay lower for longer. Economists polled by Dow Jones had expected 1 million additions.

Stock markets in Asia-Pacific closed broadly higher on Monday, shrugging off the weaker-than-expected April U.S. jobs reports.

In commodity markets, oils futures dipped into the red Monday, having earlier jumped to their highest level in nearly three years after one of the largest pipelines in the U.S. remained closed following a cybersecurity attack.

In terms of individual share price movement in Europe, British polymer company Victrex climbed 7.3% toward the top of the Stoxx 600 after reporting a 5% rise in sales for its fiscal first half, leading JPMorgan to upgrade the stock to "overweight" from "neutral" and raise its price target.

At the bottom of the European blue chip index, Belgian pharmaceutical company Galapagos fell 6.2%.

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