European Stocks Rise Broadly

European stock markets rose broadly on Monday, making a positive start to the new week despite the Wall Street holiday limiting activity.

As of 0340 GMT (0740 GMT), Germany's DAX was trading 0.1% lower, while France's CAC 40 was up 0.5% and the UK's FTSE 100 was up 0.9%. Global markets are trying to take a more positive outlook at the start of the second half of the year after suffering sharp losses since the start of the year as tightening government policies and rising living costs signaled an increased risk of the global economy entering a growth slowdown. However, it is hard to see these gains lasting for long as the latest German trade data shows the challenges that the Eurozone's main growth driver has to contend with. Germany posted a monthly trade deficit in May for the first time in over 30 years as the price of oil and gas imports rose as a result of Russia's war in Ukraine. At the same time, exports fell for the third time in five months, driven by COVID restrictions in parts of China, one of Germany's main export markets. Activity in the US will be limited on Monday due to the July 4th holiday and ahead of the highly anticipated monthly US employment report. Recent economic data has added to signs that the US economy, a key global growth driver due to the Fed's aggressive policy tightening, is cooling, so Friday's non-farm payrolls report will be scrutinized for how the labor market is performing given the Fed's inflation/employment mandate. In corporate news, Ryanair (IR:RYA) shares rose 2% after the budget airline reported its busiest month ever in June, flying 15.9 million passengers, up from just 5.3 million a year earlier, surpassing the previous high set in May. Oil prices rose on Monday as traders digested concerns over a possible US economic slowdown and underlying supply tightness. Fed Chairman Jerome Powell last week spoke of the central bank's "unconditional" commitment to reining in inflation, while also acknowledging the risk of pushing the US economy, the world's largest consumer of crude, into recession. However, concerns over oil supplies remain as Libya faces further disruptions due to growing political unrest, some Norwegian oil workers strike and the Organization of Petroleum Exporting Countries and its allies struggle to meet newly increased production quotas.