© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 29, 2023. REUTERS/Staff/File Photo
(Reuters) – European stocks started the final quarter of 2023 with modest gains on Monday, as the U.S. avoided a federal government shutdown, while investors focussed on factory activity data for clues on the health of eurozone businesses.
The pan-European index rose 0.4% as of 0717 GMT, after ending the third quarter about 2.5% lower on Friday.
Wall Street futures climbed in relief after the U.S. Congress passed a stopgap funding bill late on Saturday, avoiding the federal government’s fourth partial shutdown in a decade.
Investors are awaiting euro zone’s manufacturing activity data scheduled for release at 0800 GMT. The HCOB purchasing manager’s index (PMI), compiled by S&P Global, is seen at 43.4 in September, the same level as shown in the flash reading.
Among individual stocks, Vivendi (OTC:) rose 3.3% after Barclays upgraded the French media company to “Overweight”.
BAE Systems (LON:) climbed 2.1% after Britain awarded the defence company a 4 billion pound ($4.89 billion) contract as part of the AUKUS programme with Australia and the U.S. to build attack submarines.
($1 = 0.8187 pounds)