European Markets Rally as Investors Eye Key Economic Indicators

Britain's main stock indexes rose on Monday, supported by a broad European rally, as investors awaited key economic data. The FTSE 100 rebounded 0.7%, while the midcap FTSE 250 index climbed 1%. Investors are focusing on upcoming U.S. inflation and British economic data to determine future monetary policy actions.

European markets, including Britain's main stock indexes, experienced a positive surge on Monday as investors anticipated crucial economic data expected later this week. The primary FTSE 100 index recovered 0.7% from its previous three-month low, ceasing a sequence of four consecutive loss-making sessions. The midcap FTSE 250 index also rose by 1%, joining the broader European market rally.

Meanwhile, Wall Street continued its upward trajectory following Donald Trump's re-election as President of the United States. British stock markets have been volatile since the election, with fears of a trade war potentially impacting European economic performance. Moreover, China's lackluster stimulus measures have adversely affected commodity prices, thereby pressuring the mining sector.

The FTSE 350 mining sector fell by 1.8%, with most base metals slipping due to disappointment over China's economic policies. Precious metals and mining stocks saw a significant decrease of 5.2% amid a stronger dollar, as speculations arose about the Federal Reserve's cautious policy approach under Trump's administration. Investors eagerly await forthcoming U.S. and UK economic data to gauge future monetary policy direction.

(With inputs from agencies.)