Paris - European shares inched higher in early trading on Monday,
starting the new month on a positive note following sharp gains in
January, with Julius Baer rallying after unveiling a cost-cutting plan.
Madrid's
IBEX index lagged, however, falling 1.3% as investors fretted about the
risks associated with the rising popularity of Spanish anti-austerity
party Podemos.
On Saturday, tens of thousands marched in Madrid in the biggest show of support yet for Podemos, whose policies have drawn comparisons with the Syriza party that now governs Greece.
Data showed on Monday Spain's manufacturing sector expanded faster in January, as the recovery following years of on-off recession gained steam and helped create jobs at the strongest pace in over seven years.
For Germany, however, slower job creation and weaker demand from abroad dampened growth in the country's manufacturing sector in January, in a somewhat sluggish start to the year for Europe's largest economy.
Overall, euro zone factory activity grew slightly last month as companies kept slashing prices.
At 11:09, the FTSEurofirst 300 index of top European shares was up 0.1% at 1 466.62 points. The benchmark posted its best monthly performance in over three years in January, rising 7.1%.
Shares in the Zurich-based private bank Julius Baer rose 6.4% after it said it had launched a roughly $108m cost savings programme in response to the recent appreciation of the Swiss currency.
Irish building supplies groups CRH gained 6% after it agreed to pay $7.4bn) for assets that rivals Lafarge and Holcim needed to sell to secure regulatory approval for their planned merger.
Ryanair lost 3.7%, surrendering some of its recent strong gains. The airline raised its profit forecast for the third time in as many months on Monday as costs fell and traffic grew, but said profit growth would be modest next year as rivals' cheaper fuel push fares down.
Greek shares continued to recover, with Athens's benchmark ATG up 5.7%, helped by a rally in bank stocks bouncing off record lows hit last week after a leftist government opposed to austerity measures took office.
Eurobank was up 18% while National Bank of Greece gained 11%. Athens's ATG index is still down 9.2% since Syriza was elected little over a week ago.
On Saturday, tens of thousands marched in Madrid in the biggest show of support yet for Podemos, whose policies have drawn comparisons with the Syriza party that now governs Greece.
Data showed on Monday Spain's manufacturing sector expanded faster in January, as the recovery following years of on-off recession gained steam and helped create jobs at the strongest pace in over seven years.
For Germany, however, slower job creation and weaker demand from abroad dampened growth in the country's manufacturing sector in January, in a somewhat sluggish start to the year for Europe's largest economy.
Overall, euro zone factory activity grew slightly last month as companies kept slashing prices.
At 11:09, the FTSEurofirst 300 index of top European shares was up 0.1% at 1 466.62 points. The benchmark posted its best monthly performance in over three years in January, rising 7.1%.
Shares in the Zurich-based private bank Julius Baer rose 6.4% after it said it had launched a roughly $108m cost savings programme in response to the recent appreciation of the Swiss currency.
Irish building supplies groups CRH gained 6% after it agreed to pay $7.4bn) for assets that rivals Lafarge and Holcim needed to sell to secure regulatory approval for their planned merger.
Ryanair lost 3.7%, surrendering some of its recent strong gains. The airline raised its profit forecast for the third time in as many months on Monday as costs fell and traffic grew, but said profit growth would be modest next year as rivals' cheaper fuel push fares down.
Greek shares continued to recover, with Athens's benchmark ATG up 5.7%, helped by a rally in bank stocks bouncing off record lows hit last week after a leftist government opposed to austerity measures took office.
Eurobank was up 18% while National Bank of Greece gained 11%. Athens's ATG index is still down 9.2% since Syriza was elected little over a week ago.
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