The broad-based major European indices closed higher in Monday’s trading session, as financials, travel stocks, and mining companies boosted the markets in London, Frankfurt, and Paris.
In economic news, The U.K.’s Trades Union Congress (TUC), a federation of trade unions in England and Wales, said the British economy is getting weaker ahead of Brexit, and that the government isn’t doing enough. It said a new report reveals how the economy has performed since the referendum to leave the European Union, and looks at the risks faced by individual industries.
“The U.K. economy was in a weak position ahead of last year’s vote, having failed to recover fully from the financial crisis of 2008,” said the report. “And by most measures things have only got worse over the last 12 months: growth has slowed, pay packets have shrunk, investment has dried up and consumer debt has risen to alarming levels.”
The TUC said that GDP growth since 2010 has been just three quarters of the long-term average, and that the data from the last two quarters suggests the economy is experiencing a further slowdown, with annualized growth of 1%. It also said that following the decision to leave the E.U., the value of the pound fell sharply, and has continued to fall, and that the devaluation helped push CPI inflation from 0.3% to 2.7% in a year, while nominal wage growth has slowed, “resulting in a decline in disposable income and record low levels of saving.”
Meanwhile, the most recent Global Financial Centres Index published by Z/Yen and the China Development Institute said that London remained at the top spot among the world’s financial centers, staying ahead of second-place New York
Zurich was the next highest ranked among among European cities at ninth worldwide, moving up two places from the previous report. The GFCI is updated every March and September. Frankfurt came in at number 11, up 12 spots from 23, while Luxembourg and Geneva were placed 14th and 15th, moving up from 18th and 20th place respectively.
In equities, travel companies and mining stocks boosted the FTSE in London as a airline operator easyJet plc rose 3.4% while cruise line operator Carnival climbed 2.9%. Meanwhile, mining companies Rio Tinto, Antofagasta, and Glencore International were up 2.2%, 1.8%, and 1.7% respectively. Provident Financial led the index, up 3.8%.
In Frankfurt, reinsurance company Munich Re Group led the DAX higher, rising 4.1%, followed by Commerzbank and Deutsche Bank, which climbed 3.2% and 2.8% respectively. Technology group Siemens added 2.4% and airline operator Deutsche Lufthansa was up 2.3%. Financial services company Allianz gained 2.1%.
And in Paris, banks buoyed the CAC as Credit Agricole, Societe Generale, and BNP Paribas rose 2.5%, 2.2%, and 2.1% respectively. Energy management and automation company Schneider Electric rose 2.5%, while luxury goods company LVMH Moet Hennessy Louis Vuitton and media firm Vivendi each closed 2.4% higher.