European stocks mostly climb in global rally

European equities mainly rose Monday as bright US jobs data mostly eclipsed the impact of poor Chinese trade numbers, dealers said.

Frankfurt and Paris advanced in early afternoon deals, while London was essentially flat after losing initial gains in hesitant trade.

“Equities opened the week in positive territory, continuing the theme seen in Asia and on Wall Street with little in the way of corporate news to excite traders,” said Russ Mould, investment director at brokerage AJ Bell.

However, Airbus Group shares fell 0.63 percent to 50.58 euros in Paris after Britain’s Serious Fraud Office revealed on Sunday it had opened a criminal probe into Airbus Group, investigating allegations of fraud, bribery and corruption.

Airbus said it was aware of the probe and the aviation firm was working with investigators.

Elsewhere, Tokyo led Asia stocks higher Monday, tracking a strong lead from Wall Street where markets surged in the wake of strong US jobs data.

Washington reported Friday a big gain in jobs in July and upgraded employment estimates for the prior two months, boosting the odds of a Federal Reserve interest rate hike this year, dealers said.

“Equity investors appeared comfortable with the idea of a tightening in the United States’ monetary conditions,” said analyst Ipek Ozkardeskaya at trading firm London Capital Group.

“Whether or not the Fed could hike rates this year is still dependent on the data.”

The US Labor Department said the world’s top economy added 255,000 jobs in July, easily topping analyst forecasts for an increase of 185,000.

“Very often the US nonfarm payrolls report can dictate the tone of market trading for much of the month and with the summer holiday season now fully upon us that may well be the case again over the coming weeks,” said Derek Halpenny, European head of markets research at Bank of Tokyo-Mitsubishi UFJ.

The broad-based S&P 500 and the tech-rich Nasdaq ended at all-time highs on Friday.

Asia stocks followed suit on Monday, with Tokyo rising 2.4 percent and Hong Kong jumping 1.5 percent.

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