Europe Rallies on Gold Gains, Fading Rate Hike Bets
European markets kicked off Monday on a positive note, buoyed by gains in basic resources shares as gold prices surged due to a weaker dollar and softer-than-expected U.S. economic data.
The pan-European STOXX 600 index rose 0.2% to 659.30 points, with the basic resources sector leading the charge at 1.4%, driven by higher gold prices that make the precious metal less expensive for holders of other currencies.
Technology stocks also joined in, adding 1.1% to their value as investors maintained their risk appetite despite geopolitical uncertainty.
The energy sector benefited from rising crude oil prices, gaining 0.3%, while the food and beverage sector lagged behind, declining 0.7% due to profit-taking after its strong performance in the previous period.