European Markets Jumped Despite "Brexit" Concerns

(RTTNews) - The European markets ended the first session of the new trading week solidly in positive territory. The strong performance of the Asian markets and rising crude oil prices provided an early boost to investor sentiment. Mining and resource stocks also jumped due to rising iron ore prices. Investors largely shrugged off "Brexit" fears, but will keep a close eye on recent developments.

U.K. Prime Minister David Cameron struck a reform deal at a European Union summit on Friday that would give the UK "special status" in the EU. Meanwhile, London Mayor Boris Johnson announced over the weekend that he would campaign for a British exit from the EU. Cameron has set a June 23 date for referendum on Britain's membership of the EU.

Markets in Asia climbed Monday, as investors cheered news over the weekend that China's top securities regulator has been replaced. China removed the head of its securities regulator, Xiao Gang, and replaced him with Liu Shiyu, a veteran of China's central bank and chairman of Agricultural Bank of China, to oversee the world's second-largest stock market in the wake of last summer's slump that saw Xiao blamed for mismanagement.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 2.19 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.66 percent.

The DAX of Germany climbed 1.98 percent and the CAC 40 of France rose 1.79 percent. The FTSE 100 of the U.K. gained 1.47 percent and the SMI of Switzerland finished higher by 1.25 percent.

In Frankfurt, E.ON climbed 5.37 percent. The utility warned last week that the downturn in the energy industry is a "reality check" and its dividend policy many not be sustainable. Peer RWE also increased 5.78 percent.

ThyssenKrupp advanced 4.78 percent and Salzgitter added 4.36 percent.

Volkswagen gained 4.12 percent and Daimler rose 1.69 percent. BMW also finished higher by 1.84 percent.

Deutsche Bank climbed 3.82 percent and Commerzbank closed up by 2.50 percent. In Paris, Societe Generale increased 3.66 percent. BNP Paribas gained 3.09 percent and Credit Agricole rose 1.77 percent.

Total advanced 2.74 percent and Technip added 2.17 percent.

Renault rose 2.33 percent and Peugeot finished higher by 2.97 percent.

In London, Home Retail Group surged 12.96 percent on reports that Sainsbury is seeking an extension of its Tuesday's deadline to make a formal proposal after the emergence of a rival offer from Steinhoff.

Associated British Foods rose 1.23 percent. In its pre-close trading update ahead of its interim results due on April 19, the company said that it now expects only a marginal decline in full-year adjusted earnings.

HSBC Holdings tumbled 0.88 percent. The Asia-focused lender posted an unexpected fourth-quarter loss after booking fair-value losses on its own debt.

Mining stocks rallied as iron ore prices increased. Glenore surged 11.32 percent and Anglo American jumped 10.88 percent. BHP Billiton leaped 8.48 percent and Rio Tinto gained 8.43 percent. Antofagasta also closed up by 7.49 percent.

Royal Dutch Shell increased 3.45 percent and BP added 3.90 percent. Tullow Oil also gained 2.19 percent.

The euro area private sector activity expanded at the weakest pace for over a year in February on waning new orders amid intensifying deflationary pressures.

The flash composite Purchasing Managers' Index dropped more-than-expected to 52.7 from 53.6 in January, flash survey data from Markit showed Monday. This was the lowest reading since January 2015. The score was expected to fall slightly to 53.5 in February.

Germany's private sector growth slowed to a seven-month low in February primarily due to the weaker manufacturing expansion, flash data from Markit showed Monday. The flash composite output index fell to 53.8 in February from 54.5 in January.

The services Purchasing Managers' Index edged up to 55.1 from 55 in January. It was expected to remain unchanged at 55.

On the other hand, the PMI for manufacturing declined to a 15-month low of 50.2 from 52.3 a month ago. Economists had forecast the score to drop slightly to 52.0.

The French private sector contracted for the first time in over a year in February, flash data from Markit showed Monday. The flash composite output index dropped to a 13-month low of 49.8 in February from 50.2 in January.

The manufacturing Purchasing Managers' Index rose unexpectedly to 50.3 from 50 a month ago. Economists had forecast the indicator to fall to 49.9.

Meanwhile, the services PMI slid to 49.8 from 50.3. It was expected to rise marginally to 50.4 in February.

British manufacturing orders weakened in February, according to Industrial Trends Survey from the Confederation of British Industry showed Monday. The total order book balance fell unexpectedly to -17 percent from -15 percent in January. It was forecast to improve to -12 percent.