European, US Stocks Up On Manufacturing Optimism

PAN PYLAS

LONDON (AP) — European and U.S. stock markets rose Monday after a much better than anticipated U.S. manufacturing survey helped ease concerns that the recovery in the world's largest economy was faltering.

In Europe, Britain's FTSE 100 index of leading British shares closed up 51.70 points, or 1 percent, at 5,096.25 while Germany's DAX rose 15.86 points, or 0.3 percent, to 5,430.22. The CAC-40 in France was 31.77 points, or 0.9 percent, higher at 3,639.46.

And on Wall Street, the Dow Jones industrial average was 117.22 points, or 1.2 percent, higher at 9,829.65 around midday New York time while the broader Standard & Poor's 500 index rose 10.97 points, or 1.1 percent, to 1,047.16.

Monday's solid performance was largely due to strong U.S. manufacturing data from the Institute for Supply Management. The trade group of purchasing executives said the sector grew at its fastest pace in more than three years in October.

Its main index read 55.7 last month from 52.6 in September. It's the third straight reading above 50, which indicates growth, and was way more than the 53 predicted by economists.