By Steve Goldstein
European stocks turned higher on Monday after early losses, as improving data on the economy helped offset disappointing results from HSBC Holdings and Société Générale.
Up 1.1% in July, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.57% rose 0.5%.
The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.24% rose 1.2% and the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.56% added 0.4% as the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.30% slipped.
U.S. stock futures /zigman2/quotes/208225921/composite SP +2.36% eased after a 5.5% gain for the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.30% in July. Lawmakers reported progress on a new stimulus package over the weekend but gaps remained between Democrats and Republicans.
Economic data showed how far the recovery has progressed. The Caixin China manufacturing purchasing managers index rose to 52.8 in July, with the best readings for output and new orders since January 2011. Spain’s manufacturing PMI rose to 53.5, its best showing since April 2018, as the final manufacturing PMI reading for the eurozone came in stronger than the flash report.
The U.S. economics calendar includes the Institute for Supply Management’s manufacturing index and a number of nonvoting Federal Reserve officials speaking.
Of companies in the spotlight, HSBC Holdings /zigman2/quotes/203901799/delayed UK:HSBA -1.51% /zigman2/quotes/208272822/composite HSBC -2.21% dropped after reporting a 77% drop in first-half net profit .
Société Générale /zigman2/quotes/206663756/delayed FR:GLE -3.30% declined after reporting a € 1.26 billion loss for the second quarter.
Siemens Heathineers /zigman2/quotes/203113177/delayed XE:SHL +0.47% slipped 5% after reaching a deal to buy radiation therapy software company Varian Medical Systemsms /zigman2/quotes/203738795/composite VAR -0.07% for $16.4 billion. Siemens /zigman2/quotes/205905025/delayed XE:SIE +7.27% said its stake in Siemens Heathineers will fall to 72% from 85% as part of the fundraising for the deal.
Morphosys /zigman2/quotes/205694191/delayed XE:MOR -1.97% /zigman2/quotes/204695992/composite MOR -1.57% jumped after the biotech company got accelerated approval from the U.S. Food and Drug Administration for a lymphoma drug.