European stocks opened higher on Monday morning, with equity markets advancing. Positive data from the United States Department of Labor that was released on Friday gave hope that the Federal Reserve may increase interest rates in 2016. Data from the United States showed that hourly earnings rose 0.5% in January and 2.5% year-over-year.
The positive data helped European markets rally in early morning trading, with the DAX 30 gaining 0.49% and France’s CAC 40 rising 0.23%.
Initial gains were quickly lost with stocks plummeting by mid afternoon trading as France’s CAC 40 dipped 2.7%, Germany’s DAX 30 fell 2.82% and Euro Stoxx 50 plunged 2.78%. The FTSE 100 was also down 2.54% on the day.
Global economic growth is the main issue for European markets, with several industries falling 2.6% to 2.9% on the day. Among the sectors falling include auto, banking, construction and technology. China also released disappointing figures, which further hurt market sentiment.
Several financial stocks tumbled on the day, with Societe Generale (SOGN) down 4.91%, BNP Paribas (BNPP) tumbling 5.17%, and the Deutsche Bank (DBKGn) falling 6.02% on Monday.
Anglo American (AAL) is down 0.63%, Glencore (GLEN) rose 2.59%, and Randgold Resources (RRS) was one of the day’s biggest winners, up 10.47% on the day.