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European shares rise amid worries, ADP employment eyed

February 5, 2014

European shares surged on Wednesday mid-day trading after a report showing a widening expansion in Europe's key sectors in January. A composite of manufacturing and services climbed to 52.9 in January from 52.1 the previous month in the euro area, adding to signs recovery is gaining traction. However, there are still some worries from Emerging markets capital outfight and slowdown in U.S. growth. Eyes will focus on ADP employment which may the private sector added 190,000 jobs in January after adding 238,000 in December. The figures will be watched carefully as they mainly give an indication about the jobs report due on Friday. Another report due on Wednesday may signal that U.S. services sector expanded at a faster pace last month. Regarding earnings by companies, results released so far are considered mixed and therefore has failed to give clear indications to investors. As of 07:11 EST , STOXX EUROPE 600 soared 0.32% to record 318.60 points. Health Care led the advance with a rise of 1.08%, followed by Consumer Services which recorded 0.46% rise. The highest shares were for Vestas Wind Syst, as it advanced 6.23% to 180.70 DKK , while the biggest drop was recorded by Hargreaves Lands as its shares plummeted 6.41% to 1401.00 pounds. Looking at other the major European indices, the French CAC index rose 0.23% to 4126.72 levels and Britain`s FTSE 100 index recorded 0.31% rise to 6467.18 points. Germany`s DAX index inched down 0.05% to 9123.41 points.

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Source: Financial Markets

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