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European stocks push higher after positive data; Dax jumps 1.13%

Published 07/24/2013, 07:22 AM
Updated 07/24/2013, 07:23 AM
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Investing.com - European stocks pushed higher on Wednesday, after the release of positive economic reports out of the euro zone, although disappointing Chinese manufacturing data fuelled fresh concerns over the outlook for growth in the world's second largest economy.

During European afternoon trade, the EURO STOXX 50 rallied 1.29%, France’s CAC 40 surged 1.31%, while Germany’s DAX 30 jumped 1.13%.

Markit's euro zone composite purchasing managers' index rose to 50.4 from 48.7 in June on the back of stronger data from Germany and France, fuelling optimism that the euro zone economy could emerge from a recession in the third quarter.

Germany’s manufacturing PMI rose to 50.3 from June's reading of 48.6, and the service sector PMI jumped to 52.5, from 50.4.

The French manufacturing PMI ticked up to a 17-month high of 49.8 from 48.4 in June, while France’s services PMI improved to 48.2 from 47.2 last month.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale rallied 2.12% and 1.64%, while Germany's Deutsche Bank climbed 0.43%.

Bloomberg reported earlier that Deutsche Bank was preparing to consolidate two debt-trading groups in London, as it seeks to cut costs and riskier holdings.

Peripheral lenders added to gains, with Spanish banks Banco Santander and BBVA jumped 1.36% and 1.47% respectively, while Italy's Intesa Sanpaolo and Unicredit advanced 1.23% and 1.27%.

Elsewhere, Volvo surged 4.08% after the carmaker reported operating profit that beat estimates.

In London, commodity-heavy FTSE 100 was up 0.95%, as mining stocks turned broadly higher.

Mining giants BHP Billiton and Rio Tinto rose 0.31% and 0.67% respectively, while Glencore and Vedanta Resources surged 2.37% and 2.44%.

ARM Holdings, the chip designer whose products power Apple's iPhones and iPads, extended earlier gains, soaring 4.62%, after reporting second-quarter sales that beat estimates as phone and tablet makers demanded more advanced graphics and processing technology.

Also on the upside, EasyJet climbed 7.69% after saying quarterly sales rose 11% on higher capacity utilization and revenue per seat.

Meanwhile, financial stocks were mixed, as the Royal Bank of Scotland and hSBC Holdings gained 0.68% and 0.88%, while Lloyds Banking and Barclays shed 0.58% and 0.72%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.17% gain, S&P 500 futures signaled a 0.25% rise, while the Nasdaq 100 futures indicated a 0.82% increase.

Also Wednesday, the preliminary reading of China’s HSBC manufacturing PMI fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6.

Later in the day, the U.S. was to produce official data on new home sales.


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