European stock markets rose modestly Monday despite earlier big losses in Asia, as solid manufacturing data helped ease concerns that the global economic recovery is faltering.

Britain’s FTSE 100 index of leading British shares was up 16.63 points, or 0.3 per cent, at 5,061.18 while Germany’s DAX rose 7.78 points, or 0.1 per cent, to 5,422.74. The CAC-40 in France was 4.36 points, or 0.1 per cent, higher at 3,612.05.

Early jitters in Europe were eased by a survey showing that the manufacturing sector in the 16 countries that use the euro expanded in October for the first time in a year and a half.

The monthly purchasing managers index — a broad gauge of business activity — for the euro area rose to 50.7 from September’s 49.3. Any reading above 50 indicates that the sector is growing.

A similarly encouraging picture emerged with equivalent British data. The PMI for October spiked to 53.7 from 49.9 in September. October’s reading represented the fastest pace of growth since November 2007.

Though the manufacturing data helped stem the selling pressure in the markets that arose after Asia’s big retreat in the wake of Friday’s losses on Wall Street, investors will be looking to see if an equivalent survey from the Institute for Supply Management is equally rosy. “With Wall Street eyeing a positive start, the onus will be on the likes of the US ISM manufacturing data to impress this afternoon if we’re to avoid another turn around in sentiment,” said Anthony Grech, market strategist at IG Index.

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