European stock markets posted mostly positive results on Monday, buoyed by strong gains in Chinese indices. In Hong Kong, the Hang Seng Index closed up 2.2 % after Alibaba’s share price surged nearly 20 % on the back of robust earnings and a notable rise in AI revenue. Chinese equities also benefited from official data showing a modest increase in August factory output, with the Purchasing Managers’ Index edging up to 49.4 from 49.3 in July. Although the figure remained below the 50‑point threshold that signals expansion, it marked the fifth consecutive month of contraction.
In Europe, both London and Frankfurt saw gains, while Paris stayed flat amid ongoing political turmoil in France over contested budget proposals. Wall Street was closed for the Labor Day holiday, and the dollar traded mixed against its major counterparts. Kathleen Brooks, research director at XTB, noted that stocks typically underperform in September on both sides of the Atlantic—a pattern that began to emerge late last week after disappointing results from AI‑chip maker Nvidia and a sharp sell‑off in European and U.S. markets. U.S. inflation accelerated on Friday, reducing the likelihood of sustained Federal Reserve rate cuts in the coming months.
A U.S. appeals court also ruled that many of former President Donald Trump’s tariffs, which have disrupted global trade, were illegal, though the tariffs will remain in effect for now, leaving the issue open for a possible Supreme Court challenge. At around 10:45 GMT, the London FTSE 100 rose 0.1 % to 9,198.91 points, the Paris CAC 40 was flat at 7,705.31, and the Frankfurt DAX gained 0.3 % to 23,975.42. The Tokyo Nikkei 225 fell 1.2 % to 42,188.79, while the Hong Kong Hang Seng Index closed up 2.2 % at 25,671.78 and the Shanghai Composite rose 0.5 % to 3,875.53.
The euro and pound sterling both strengthened against the dollar, with the euro reaching $1.1722 and the pound $1.3525. Brent North Sea Crude and West Texas Intermediate rose 0.8 % and 0.9 %, respectively. Market participants will closely monitor these trends and the latest economic data in the coming days, assessing their potential impact on global trade and growth. Ongoing trade tensions and political uncertainty across regions are likely to continue shaping market sentiment, making vigilant monitoring and strategic adjustments essential.
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