Stocks in the UK were mixed in early trading. A surprise jump in UK service sector data saw the domestically-focused FTSE 250 keep hold of early gains whilst the FTSE 100, which benefits from a weaker Sterling, fell into negative territory.
The British pound hit its highest since July 15 after the service sector rebound confirmed the jump seen in manufacturing data last week and made another round of easing from the Bank of England unlikely. The UK services PMI rose to 52.9 in August, beating expectations of a smaller rise to 50.0 from the sharp fall to 47.4 in July.
European markets rose in early trading on Monday, though disappointing German service sector data eroded some of the gains.
Shares of RBS (LON:RBS) and Lloyds (LON:LLOY) were propping up the bottom of the FTSE 100 after downgrades from Deutsche Bank (DE:DBKGn). The reports follow Deutsche Bank’s suggestion last week that HSBC might need to be broken up to unlock value for shareholders.
Basic resource shares including miners BHP Billiton (LON:BLT) and Anglo American (LON:AAL) were amongst the top performers thanks to a jump in the oil prices and strong economic data out of China, the world’s biggest consumer of commodities.
Stocks markets in the US are closed for Labour Day.
USA pre-opening levels
S&P 500: closed
Dow Jones: closed
Nasdaq 100: closed
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