EUROPE MARKETS: Portugal Stocks Slump In Otherwise Upbeat Europe

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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