European stocks advance as technology companies rally.
Summary: European stocks advanced Monday as technology and resource companies rebounded, while investors speculated on the possibility of Chinese stimulus.
European stocks advanced Monday as technology and resource companies rebounded, while investors speculated on the possibility of Chinese stimulus.
ASML Holding NV added 2.4 percent, leading a measure of technology stocks to the best performance of the 19 industry groups on the Stoxx 600. BHP Billiton Ltd. and Rio Tinto Group led a rally in commodity producers. Statoil ASA and Royal Dutch Shell Plc dragged oil-and-gas shares down even as oil rose from the lowest level in almost five months.
The Stoxx Europe 600 Index climbed 0.6 percent to 399.54 at 4:30 p.m. in London, reversing earlier losses of as much as 0.7 percent. China's stocks surged the most in a month amid speculation that the government will act to prop up growth after a wider-than-expected drop in exports. Shares also benefited from expectations that mergers of state-owned enterprises may be accelerated to bolster economic growth.
"The markets are watching China quite closely as the latest data were rather disappointing, and are now speculating on a Chinese stimulus package," said Christian Zogg, a fund manager who helps oversee about $10 billion at LLB Asset Management in Vaduz, Liechtenstein. "Lower interest rates should boost GDP growth and EPS growth."
Among European stocks moving on corporate news, Banco Popolare SC increased 3.8 percent after late Friday posting better-than-expected second-quarter earnings.
Greece's ASE Index rose for a third day, advancing 2.1 percent for the best performance among western-European markets. Banks led gains as policymakers expressed optimism that talks on a third bailout deal can be wrapped up by tomorrow. Piraeus Bank SA jumped 14 percent and Eurobank Ergasias SA gained 13 percent.
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|Publication:||The Daily Star (Beirut, Lebanon)|
|Date:||Aug 11, 2015|
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