German stocks on Monday rose to the highest level in more than 16 months, as the rally in European stocks continued.
The German DAX DAX, +1.05% increased 0.88% to 13075.25, which would be the highest closing level since June 14, 2018. Though details remain unclear, stocks have been buoyed by positive headlines regarding U.S.-China trade talks.
Up for four straight weeks, the Stoxx Europe 600 SXXP, +0.73% rose 0.63% to 401.93.
Information released by data provider IHS Markit showed that the German manufacturing purchasing managers’ index rose slightly to 42.1, up very slightly from the decade-worst 41.7 in September.
“Equities have held up better than the downturn in manufacturing would suggest in part because of monetary support and in part because the economy outside of manufacturing has been more resilient,” said strategists at Goldman Sachs. The brokerage does not expect a big rally in stocks if there’s a turnaround in the data, because stocks are doing well anyway.
Ryanair Holdings RY4C, +6.54% RYAAY, +2.69% rallied 7.6% as the discount airline reported stronger-than-forecast fiscal first-half net income, beating expectations by about 8%. Analysts said the airline’s ancillary revenue growth helped offset a decline from fares.
International Consolidated Airlines Group IAG, +1.33% climbed 1% as the owner of Iberia reached a pact to buy Air Europa for €1bn in cash from Globalia in a deal aimed at bolstering its position in Madrid. “This is a strategically sensible deal that will strengthen IAG’s position in Latin America and looks to be priced competitively,” said strategists at research house Bernstein.
Siemens Healthineers SHL, +5.73% climbed 5.9% as the medical technology company’s fiscal fourth-quarter results topped forecasts.