Comments
European shares rose on Thursday as a rebound in mining stocks and gains in the automotive sector lifted the region’s markets back up following the end of a bruising third quarter.
European stocks were also supported by gains overnight on Asian and US equity markets, with some traders viewing more weak Chinese data as a sign that Beijing may undertake further measures to bolster the country's economy.
However, shares in telecoms group Altice fell by 3.3 per cent after Altice announced a capital increase to help fund its takeover of Cablevision.
The pan-European FTSEurofirst 300 index rose 1.5 per cent, while the euro zone’s blue-chip Euro STOXX 50 index and Germany’s DAX both gained 1.2 per cent.
European markets have lost ground over the last few months, hit by a slowdown in China that led to the FTSEurofirst falling nearly 10 per cent in the last quarter, while the DAX is some 20 per cent below its record high set in April.
Activity in China’s vast factory sector shrank again in September as demand softened at home and abroad, fuelling fears the world’s second-largest economy may be cooling more rapidly than expected just a few months ago.
However, metals prices rose as traders said the weak data from China — the world’s biggest consumer of metals — would reinforce the need for Beijing to unveil more economic stimulus measures.
“It is still pretty gloomy with regards to China, but I think we’re still in a ‘Goldilocks’ environment. We still have supportive monetary policy around the world,’’ said Logic Investments’ Harry Shann.
The stronger metals prices lifted mining stocks, while mining and trading giant Glencore, whose shares have been hit this week by concerns over its debt situation, rallied 6.9 per cent following upbeat broker notes on Glencore from Citigroup and Barclays.
Volkswagen shares also rose 4.4 per cent as sources told Reuters that its supervisory board is considering steps to prop up the carmaker’s credit rating amid a scandal over its rigging of emissions tests.
This contributed to the STOXX Europe Automobiles index climbing 2.5 per cent, while Fiat rose 4.3 per cent as brokers expressed confidence over a planned stock market listing of Fiat’s Ferrari brand.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.