European stocks rise, look set for a "solid 2017"

European markets rose on the first trading day of 2017.

With most other major markets closed, Europe took the spotlight on Monday, with the STOXX Europe 600 rising 0.5 percent.

Italy's FTSE MIB was the outperformer, jumping 1.7 percent. The DAX 30 rose 1.0 percent.

Supporting European markets were positive economic data. Final Eurozone manufacturing PMI data showed a reading of 54.9 in December, the highest level since April 2011.

The gain on the first trading day of the year marked a turnaround from 2016, when the STOXX Europe 600 fell 1.2 percent.

Some analysts think that European equities are set for a solid 2017.

“Bond yields and global economic momentum are two of the most important macro drivers impacting the performance of European equities, and both factors are now increasingly supportive,” equity strategists at Credit Suisse said in their year-ahead outlook.