By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Portuguese stocks slumped in an
otherwise upbeat European market on Monday, after the country's
high court struck down some of the austerity measures enacted as
part of its rescue plan.
Most other European stock markets climbed, rebounding after the
biggest weekly selloff since November seen last week in the wake of
weak U.S. employment data.
The Stoxx Europe 600 index gained 0.5% to 288.56, after posting
the biggest daily loss since October on Friday.
Portugal's PSI 20 index lost 1.3% to 5,566.67. The European
Commission on Sunday warned that if the nation failed to implement
its austerity program it could put future financial aid at risk.
The statement came after the country's high court ruled against
some of the austerity measures affecting public employees.
Shares of Banco Comercial Português SA lost 3.5% and Banco
Espirito Santo SA dropped 2.6%.
Among other notable decliners, shares of Spirent Communications
PLC sank 5.1%, after UBS cut the firm to neutral from buy, worried
that the recovery is taking longer than anticipated.
The broader European stock markets, however, moved higher,
partly recovering from a sharp selloff last Friday, triggered by
U.S. nonfarm-payrolls data coming in well below estimates. The data
followed other disappointing releases last week, including initial
jobless claims and the ISM services index
U.S. stock futures pointed to a higher open on Wall Street.
France's CAC 40 index gained 0.8% to 3,692.13, with shares of
oil major Total SA (TOT) up 0.8% as oil prices moved higher.
In Germany, the DAX 30 index rose 0.4% to 7,690.44, while the
U.K.'s FTSE 100 index added 0.6% to 6,288.02.
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