European Shares Gain After French Vote

(RTTNews) - European stocks edged higher on Monday, the euro hit its strongest level since mid-June and the premium investors demand for holding France's bonds plunged, as the prospect of French political gridlock helped ease concerns about further strains on the country's public finances.

Also helping underpin investor sentiment, a survey showed the downturn in the eurozone's manufacturing sector wasn't as bad as initially feared in June.

The HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, came in at 45.8 in June - ahead of a 45.6 preliminary estimate.

The pan European STOXX 600 was up 0.3 percent at 512.90 after falling 0.2 percent on Friday.

The German DAX inched up 0.2 percent and the U.K.'s FTSE 100 added 0.3 percent while France's CAC 40 rallied 1.3 percent.

French banks BNP Paribas, Credit Agricole and Societe Generale surged 3-4 percent as the first round of voting left Le Pen's National Rally looking short of securing a majority in parliament.

Valneva jumped 5.2 percent. The European Commission (EC) has granted marketing authorization for the company's chikungunya vaccine IXCHIQ for individuals 18 years of age and older.

Airbus climbed nearly 2 percent after it entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus.

Nestle rose about 1 percent after reports indicated that the Swiss food giant is anticipating stable growth with positive volume and product mix contributions from the second quarter throughout the remainder of the year.

Mining giant Anglo American tumbled nearly 3 percent in London.

The company has suspended production at Grosvenor steelmaking coal mine in Queensland, Australia, following an underground coal gas ignition incident.

Petrofac jumped 4.5 percent. The energy services firm said it has extended the existing forbearance agreement with its noteholders regarding non-payment of interest on senior secured notes from June 30 to July 25, 2024.