European Stocks Posting Solid Gains

NEW YORK (TheStreet) -- European markets saw positive momentum Monday, even though the Asian markets closed the trading session mixed.

Most European indexes were advancing, as the heavyweight commodity companies posted important gains. Each of Europe's biggest indexes, the Dax, FTSE, IBEX and CAC 40 were up about 1%, denoting strong momentum seen in the overall global market recently.

The more volatile, and therefore more risky, Eastern European equity markets gained 0.5% on average in Monday trade, underperforming their western counterparts. Most stocks from this region failed to find the momentum to push higher and easily hold.

In the 12 months of trade since the Lehman Brothers debacle the global daily trading ranges on equity trade have increased from around 0.5% to above 1% a day, a reflection of the market's inability to easily value risk. Fair value has created wider ranges each day, as speculative risk weighs the ebbs and flows of the post-credit crisis world.

After an initial selloff seen during the early Sunday open, S&P 500 futures found the strength to recover every point lost earlier and even add some more. Right now, the S&P futures are trading near the 1090.00 resistance area, a level the market had previously topped.

The commodity and the food and beverage sectors were responsible for most of the gains seen during the European session. Commodity companies were pushed higher, mainly by oil's test of $79, the highest value that oil has touched in a year, and on the rally seen in some metals. The food and beverages sector advanced after the Swiss-listed company, Nestle, was upgraded to "buy" by UBS.

In Monday trade, Nestle was up 3.5%, being the one of the best gainers on the Swiss Stock Exchange, together with Swatch.

In Germany, the gains were led by the carmaker sector, following the comments made by Daimler's(DAI Quote) CEO, who said that the company would overshoot its saving target of 4% in 2009. This has helped Daimler advance 1.5%, while its rival Volkswagen gained 2%.