Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Miners lift European shares on metals prices, euro zone growth

Stock MarketsAug 16, 2017 12:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt

By Helen Reid and Kit Rees

LONDON (Reuters) - Miners and oil stocks led Europe's major share indexes higher on Wednesday on the back of higher metals prices and improved euro zone GDP figures.

The pan-European STOXX 600 (STOXX) ended the session 0.7 percent higher, its third day of gains after a sharp sell-off last week. Euro zone stocks and blue chips (STOXX50E) also jumped 0.7 percent.

Basic resource stocks (SXPP) provided the top boost, gaining 2.5 percent after London zinc hit a decade high, lifted by Chinese construction spending.

Glencore (L:GLEN), Boliden (ST:BOL), Anglo American (L:AAL) and Outokumpu (HE:OUT1V) rose by between 3.4 and 4.2 percent, while oil stocks (SXEP) edged up 0.7 percent.

Euro zone GDP expanded by 0.6 percent quarter-on-quarter and the annual growth figure was upgraded to 2.2 percent from the earlier estimated 2.1 percent.

Stronger economic growth is part of the reason global active funds remain overwhelmingly positive on European equities, the biggest consensus overweight position according to Barclays’ analysis of investor flows.

"The market mindset is that Europe is recovering from a very deep, very long recession that hit at its financial core," said Christopher Peel, chief investment officer at Tavistock Wealth.

"The banking system is finally starting to show signs of having worked through the legacy of 2008-2009," Peel added.

Earnings drove some strong moves, with British builder Balfour Beatty (L:BALF) jumping 6.4 percent, leading construction stocks higher, after first-half profits were boosted by a rebound in construction in Britain.

By contrast, a second-quarter profit disappointment weighed on Swedish food retailer ICA (ST:ICAA), down 6.5 percent, while Danish healthcare product maker Coloplast (CO:COLOb) dropped more than 6.2 percent after its third-quarter organic growth fell short.

Car insurer Admiral (L:ADML) fell 6 percent after profits rose just 1 percent in the first half.

Second-quarter results season was drawing to a close, with earnings expected to grow 15 percent from the second quarter last year, or 12.8 percent excluding the energy sector, Thomson Reuters data showed.

"Earnings and earnings expectations are rising as you're getting a global recovery," said Tavistock's Peel.

M&A speculation again boosted Fiat Chrysler (MI:FCHA) and Exor (MI:EXOR), the investment fund which owns the carmaker.

Fiat and Exor jumped 2.6 and 2.1 percent respectively, extending gains from Monday when a media report said a Chinese company may be interested in the carmaker.

Swedish healthcare firm Elekta (ST:EKTAb) gained 2.6 percent after JP Morgan upgraded it to "overweight".

"We believe the potential of (radiation therapy) Unity has not been fully captured by the market; this is reflected in the (approximate) ... 13 percent short interest in the stock," JP Morgan analysts said. "Consensus momentum could swing in the next six to 12 months."

Miners lift European shares on metals prices, euro zone growth
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email