LONDON — European stocks closed higher on Monday, shrugging off last week's negative sentiment.
The pan-European Stoxx 600 index provisionally closed 0.76% higher, with most sectors finishing the day in the green. Travel and leisure stocks led gains, up 2.18%, while banks added 1.17%.
All major regional bourses also closed higher, with the U.K.'s FTSE 100 rising 1.09%.
Burberry shares fell more than 7% at one point before closing 4.86% lower as luxury stocks pulled back amid waning fortunes for the sector. The British fashion house was last week relegated from the FTSE 100 index following a steep decline in its share price on weak demand. Shares of Hugo Boss and Kering also both pulled back on Monday.
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The shift in gear for regional markets comes after a lackluster start to the new trading week in the Asia-Pacific region. Markets there fell overnight, with Japan's Nikkei 225 leading losses in the region, after the weaker-than-expected U.S. jobs report on Friday.
U.S. nonfarm payrolls rose by 142,000, missing a 161,000 gain estimated by economists polled by Dow Jones. On the other hand, the unemployment rate edged down to 4.2%, in line with expectations. The data has stoked fears of a slowing labor market in the U.S.
Money Report
U.S. stocks jumped on Monday as markets tried to recover some of the steep losses recorded last week. The S&P 500 had tumbled 4.3%, registering its worst week since March 2023, while the Nasdaq Composite plunged 5.8% for its worst weekly performance since 2022, and the 30-stock Dow dropped 2.9%.
Two key inflation prints that could inform the Federal Reserve's next interest rate decision are slated for release this week in the U.S.
There are no major earnings or data releases in Europe Monday.
