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Jul 11, 2016

European Markets at Close Report, by CNBC on July 11, 2016: European Stocks Close Sharply Higher After 500 Hits All-Time High

Holly Ellyatt, Alexandra Gibbs, Katy Barnato

European stocks finished with strong gains on Monday after the S&P 500 index posted an all-time record high shortly after Wall Street opened.
FTSE FTSE 6675.81 85.17 1.29% 735214738
DAX DAX 9828.31 198.65 2.06% 61194000
CAC CAC 4265.12 74.44 1.78% 74455304
IBEX 35 IBEX 35 Idx 8307.40 121.50 1.48% 188042176

The pan-European STOXX 600 index closed 1.6 percent higher provisionally, with all sectors in positive territory.

London's FTSE 100 rose 1.1 percent, while the domestically-focused FTSE 250soared 2.7 percent. France's CAC and Germany's DAX extended gains, up 1.6 and 1.7 percent respectively.
One of the best performers on the STOXX 600 index was Banca Monte dei Paschi di Siena (BMPS), which traded as much as 7 percent higher on expectations that it will sell a big portion of its non-performing loan portfolio to the Italian bank rescue fund, Atlante, Reuters reported.

Thyssenkrupp also jumped as much as 6 percent, after the German steelmaker confirmed on Sunday that it was in talks with India's Tata Steel about a consolidation of beleaguered European steel mills.
The best-performing sector was basic resources stocks, which traded 3.5 percent higher, as metal prices rose. Shares of miner Glencore were up around 5 percent and steel giant ArcelorMittal popped as much as 5.8 percent.
Anglo American jumped above 7 percent, after Citigroup raised its target price on the stock.
Market sentiment around the world was buoyed by Friday's jobs data from the U.S. The widely eyed U.S. non-farm payrolls showed 287,000 jobs were created in June, beating expectations. The unemployment rate read 4.9 percent, also better than forecast.
Plus, markets were boosted by a landslide victory for Japan's ruling coalition in upper house elections. This makes it likelier Prime Minister Shinzo Abe will be able to push through further monetary easing measures. A stimulus package of at least 10 trillion yen ($97.9 billion) is expected.
Subsequently the U.S. benchmark S&P 500 hit a new all-time intraday high soon after Wall Street's open, breaking a previous record set on May 20, 2015.
The jobs data was especially important as the shock slowdown in May hiring was one reason the U.S. Federal Reserve cited for leaving interest rates unchanged at its meeting last month. The Brexit referendum in the U.K. also gave the Fed reason to pause before tightening rates further.

Farnborough Airshow begins

Virgin Atlantic signed a deal to buy 12 of Airbus's biggest twin-engine model, the A350-1000, Reuters reported. Airbus beat Boeing to the scarce order for big jets, as economic and political uncertainties overshadow the Farnborough Airshow. Shares in the firm were up around 2.7 percent.
Shares in a number of Britain's house-builders and banking stocks were sharply higher, with the two sectors highly volatile since the U.K.'s vote to quit the European Union. Property stocks Taylor Wimpey, Barratt Development and Persimmon were all above 6 percent, while U.K. lenders, Barclays, RBS and Lloyds were sharply higher.
Spanish wind turbine manufacturer Gamesa jumped over 6 percent, after Exane BNP Paribas raised its price target and rating on the stock.