News Column

European Stocks Rally To Start Third Quarter

July 1, 2014

BRUSSELS (Alliance News) - European stocks rallied Tuesday as better-than-expected Chinese factory data bolstered hopes that the global recovery is back on track.

The Euro Stoxx 50 index of eurozone bluechip stocks added 0.88%, having risen more than 2% in the second quarter despite June weakness.

The German DAX rose 0.71%, the French CAC 40 added 0.87% and the UK'sFTSE 100 gained 0.87% as well.

In corporate news, BNP Paribas gained 3.6% after reaching an USD8.97 billion settlement with the US

Renault led all CAC 40 stocks with a 4.5% gain.

Danone added 1.6%. Cheuvreux raised the stock to ''Buy' from ''Hold.''

Miners were among the best performers in London. Anglo American rose 4%. Rio Tinto 3% after Bank of America Corp. upgraded its rating on the shares.

Bilfinger SE dropped 18% in Frankfurt after cutting its full-year profit forecast.

In economic news, eurozone manufacturing recovery slowed slightly more than initially estimated in June, final data from Markit Economics showed. Nonetheless, the score remained above 50, extending the recovery to a twelfth successive month in June.

The final Purchasing Managers' Index for manufacturing dipped to a seven-month low of 51.8 in June from 52.2 in May and below the earlier flash estimate of 51.9.

Estimates released by the German Federal Labor Agency showed that German jobless rate was unchanged at 6.7% in June, in line with expectations. The number of unemployed people rose by 9,000.

Meanwhile, the German Federal Statistics reported that jobless rate in the nation was unchanged at 5.1% in May.

A separate survey showed that manufacturing activity in the UK gained further ground in June, with the Markit/CIPS manufacturing purchasing managers' index rising 0.5 points to 57.5.

Chinese manufacturing purchasing managers' index rose to a six-month high in June after a weak start to the year. The results of a survey by the China Federation Of Logistics And Purchasing and the National Bureau of Statistics showed that the manufacturing PMI rose to 51 in June, in-line with economists' expectations, from 50.8 in May.

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Source: Alliance News

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