European shares rose on Monday, regaining ground after a sharp selloff last week, as investors reacted to soft US jobs data that raised expectations of an interest rate cut by the Federal Reserve. The pan-European STOXX 600 index climbed 1.12 per cent by 8:38 a.m. GMT, with broad-based gains across major markets. Germany's DAX rose 0.90 per cent, France's CAC 40 gained 0.89 per cent, Spain's IBEX 35 jumped 1.10 per cent, and the UK's FTSE 100 edged up 0.38 per cent. The rebound followed Friday's weaker-than-expected US nonfarm payrolls report, which pushed Fed fund futures to price in around 60 basis points of rate cuts by December—up from 33 basis points prior to the data release. Markets are now pricing in an 83 per cent chance of a rate cut in September. Swiss stocks underperformed with SMI index falling 0.63 per cent, slumping to their lowest in over three months as investors continued to digest a 39 per cent US tariff rate and the Trump administration's shifting trade policy. With little economic data due from Europe, attention shifts to US factory orders for June, which may offer fresh insight into how businesses are coping with the new tariff landscape. Adding to political uncertainty, US President Donald Trump said on Sunday he would soon appoint a new head of the Bureau of Labor Statistics, days after firing Erike McEntarfer over unsubstantiated claims of data manipulation. Attribution: Amwal Al Ghad English, Reuters, Investing Subediting: M.S.Salama
