European stocks advance as VW news lifts sentiment

By FXStreet FXStreet (Mumbai) – The stocks on the European bourses reverse initial dip and swing back higher into positive territory, as the region’s corporate news outweigh the ongoing weakness around China’s stock markets and oil price decline.

The Chinese equities slump this Monday as the concerns over China’s economic prospects resurfaced following the release of poor CPI report over the weekend. While markets raised doubts over China’s ability to manage the recent volatility triggered by the local stock markets. The Shanghai composite index close -5.33% while the Shenzhen’s CSI 300 index finished -5.03%.
VW news lifts sentiment

The rally in the German stocks led rest of Europe higher on the back of stronger auto sector stocks. Shares of Volkswagen jumped about 5% after its CEO Matthias Müller announced plans for more investment the US and create more jobs.

Germany’s DAX 30 index rallies 0.78% to 9,923, while the UK’s FTSE 100 index gains 0.24% to 5,925. Among other European indices, the French CAC 40 index rises 0.75% to 4,362, while the pan-European Euro Stoxx 50 index is up 0.83% to 3,062.
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Source:: FX Street