European stock markets closed higher in Monday trading as The Stoxx Europe 600 rose 0.5%, the Swiss Market Index advanced 0.9%, France's CAC was up 0.3%, the FTSE in London gained 0.5%, and Germany's DAX increased 0.7%. This upward movement signals a potential stabilization in the European markets despite the ongoing industrial recession facing major manufacturers.
Europe's industrial recession has intensified among major manufacturers in September due to macro factors such as competitive pressures from China, high energy costs, and a flagging eurozone economy. The latest reading of the GEP Global Supply Chain Volatility Index reveals a decline to a nine-month low of -0.74 from -0.53 the previous month, further highlighting the challenges faced by the manufacturing sector. In Germany, the headline HCOB Germany Manufacturing PMI Export Conditions Index slid into contraction territory in September, falling to an eight-month low of 49.8 from 50.7 in August.
This contraction is indicative of the persistent struggles within the manufacturing industry amid external pressures. Meanwhile, producer prices for agricultural products in Germany fell 4.4% in August from July and were down 2.8% from a year earlier. These figures underscore the deflationary trends affecting the agricultural sector. In Switzerland, the producer and import price index declined by 0.1% to 107.2 points in September from August.
The Swiss Federal Statistical Office attributed this decline mainly to lower petroleum product prices, reflecting broader energy price fluctuations. In corporate news, the French government is contemplating taking a stake in French pharmaceutical company Sanofi's consumer health business, which is currently in discussions to be sold to US firm Clayton Dubilier & Rice.
This strategic move aims to protect jobs and maintain production within France, as reported by Bloomberg. Neither Sanofi, CD&R, nor the French Finance Minister's office responded immediately to inquiries from MT Newswires. UK financial services company HSBC began a comprehensive review of expenses and operational controls at its China digital wealth business, Pinnacle, a few months ago, according to reports from Reuters citing several unnamed sources.
HSBC declined to comment on the matter. Stellantis announced Monday that it has expanded its employee share purchase program, launching a second round across 18 countries. The prominent European automaker stated that nearly all of its more than 230,000 employees can subscribe to the program between Nov.
5 and Nov. 14, allowing for the purchase of up to a total of 14 million shares. Additionally, Barclays' US consumer bank and General Motors disclosed on Monday that they have signed a long-term agreement allowing the British financial services company to exclusively issue GM-branded rewards and business Mastercard charge cards.
Financial terms of the deal were not made public..