Long-awaited signs of improvement in Japan’s economy and growth in U.S. manufacturing pushed global stocks higher on Monday.
The ISM manufacturing survey for the U.S. showed a rebound in June thanks to new orders and higher production. The increase to 50.9 points from May’s 49 shows the sector is expanding once again. A reading above 50 suggests growth, while those below indicate contraction.
The survey showed employment in the sector remained weak, however, suggesting companies are still cautious about the future.
The survey boosted stock markets as investors estimated it was strong enough to show the recovery is on track, but not so strong as to encourage the Federal Reserve to start ending its monetary stimulus program ahead of time.
In Europe, Germany’s DAX rose 0.3 percent to close at 7,983.92 while France’s CAC-40 gained 0.8 percent to 3,767.48. Britain’s FTSE 100 rose 1.5 percent to 6,307.78.
On Wall Street, the Dow was up 1.1 percent to 15,070.68 while the broader S&P 500 was 1.2 percent higher at 1,625.53.