The activity in the German manufacturing sector was slightly higher in June compared to the month before but still remained in contraction territory, a release by IHS Markit showed on Monday. The IHS Markit/BME Germany Manufacturing Purchasing Managers Index (PMI) stood at a four-month high of 45, marking an increase from 44.3 recorded in May. "Although inching up in June, Germany's manufacturing PMI remains well inside contraction territory as the sector continues to suffer in the face of global trade tensions, an autos slowdown and lingering uncertainty," Phil Smith, principal economist at IHS Markit, stated. "That said, some encouragement can be taken from the fact that the rate of decline in new orders eased for a third month running and future expectations returned – albeit only just – to positive territory," he added.
Equities on major European Stock markets traded higher shortly after the beginning of the first trading session of the week. Investors were spurned to buy by the renewal of the trade negotiations between the United States and China, as well as the signing of a deal between the European Union and South America's trade bloc Mercosur. In business news, ArcelorMittal S.A. completed the sale of several steel plants to Liberty House Group, while Allianz SE and VGP NV announced a new joint venture.
Gold prices fell under $1,400 on Monday as the reopening of trade negotiations between the United States and China led the investors to take more risks, shifting the focus towards stocks. United States President Donald Trump announced on the weekend he will suspend the implementation of additional Chinese imports following a meeting with his Chinese counterpart Xi Jinping at the G20 leaders' summit in Japan.