Sun, Feb 06, 2011 - Page 5 News List

European markets rise on encouraging manufacturing data


European stocks rose this week, snapping two weeks of losses, as reports showed manufacturing in the US, China and Europe expanded and the US unemployment rate unexpectedly declined last month.

Basic-resource shares posted the best performance among 19 industry groups as a report showing that Chinese manufacturing expanded last month boosted metal prices.

The benchmark STOXX Europe 600 Index advanced 1.9 percent to 285.9 this week. The gauge has gained 3.7 percent so far this year as reports suggested the global economy continues to recover and investors speculated that European leaders will increase their efforts to contain the region’s debt crisis.

In Europe, manufacturing expanded more rapidly than estimated last month, accelerating to the fastest pace in nine months because of stronger output in Germany.

A gauge of manufacturing in the euro area rose to 57.3 from 57.1 in December, Markit Economics said.

Per-share earnings have topped analysts’ estimates at 39 of the 70 companies in the STOXX 600 that reported results since Jan. 10, according to data compiled by Bloomberg.

National benchmark indices rose in 14 of Europe’s 18 western markets. France’s CAC 40 Index gained 1.1 percent, the UK’s FTSE 100 Index rose 2 percent, while Germany’s DAX Index advanced 1.6 percent. Greece’s ASE Index soared 4.4 percent.

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