European benchmarks were broadly higher heading into the close Monday and the bond market slump stalled as last week's losers began to retake lost ground.
Price action came despite another down day for commodity prices and after the G20 event drew to a close in Hamburg without geopolitical upset. It also followed on the back of brighter economic data from both sides of the Atlantic.
German goods exports were stronger than expected during May, according to trade balance data released Monday. The healthy trade surplus is a plus for German GDP growth and comes just days after payrolls numbers showed the U.S. economy adding new private sector jobs at a much faster than expected pace during June.
The FTSE 100 was quoted 0.34% higher shortly ahead of the close in London, at 7,375. Meanwhile, across the English channel, the CAC 40 was up by 0.56% at 5,174 in Paris and the DAX was 0.54% higher in Frankfurt. In Southern Europe, the FTSE MIB had gained close to 1% in Milan while the IBEX in Madrid was also higher.
In individual stocks, gains were broad based across sectors in London, with investment manager Schroders, HSBC Bank plc (HSBC) - Get HSBC Holdings PLC Sponsored ADR Report , weapons maker BAE Systems Inc. (BAESY) and Ashtead Group plc (ASHTF) all showing notable gains in noon trading.
On the downside, London's mid-market was weighed down by severe losses for construction and support services firm Carillion plc (CIOIF) . The stock plunged Monday after the company hit investors with a shock profit warning, a big write-down to the value of some of its contracts and said its CEO has stepped down.
The shares fell as much as 38%, taking them down to their lowest level since March 2003, and making for a 49% loss for the year to date.
Carillion has the most shorted stock on the London Stock Exchange, with more than 23% of the shares out on loan to short sellers, according to the latest data from regulator the Financial Conduct Authority.
In France, ArcelorMittal (MT) - Get ArcelorMittal SA ADR Report was among the top risers after it reached a settlement with bankrupt Essar Steel Minnesota over some allegedly undelivered goods, for which the mining and steel firm is now due to receive $605 million.
Airfrance KLM (AFLYY) was also a big mover on the back of strong passenger travel numbers and an improving load factor for the month of June.
In Frankfurt, E.ON AG (EONGY) was among the top gainers on the DAX after analysts at HSBC raised their rating for the shares to buy, from hold.