News Column

European Stocks Soar On Easing Bank Fears, China GDP

July 16, 2014

BRUSSELS (Alliance News) - European stocks roared back to life on Wednesday, erasing most of their recent losses on upbeat economic news out of China.

The Euro Stoxx 50 index of eurozone bluechip stocks jumped 1.51%, and is up 20% from a year ago today.

Germany's DAX rose 1.44%, led by strong gains from Infineon Tech and Fresenius.

The CAC of France picked up 1.48% and the FTSE of the UK added 1.1%.

Portuguese banks helped lead financial stocks higher amid word that ailing lender Banco Espirito Santo SA may raise 2 billion euros (USD2.7 billion) from new shareholders.

Banco Espirito Santo jumped 13% after newspaper Diario Economico reported that the bank plans to strengthen its capital ratios.

Rio Tinto PLC shares are up 2.1% in London. The mining giant maintained its full-year 2014 production guidance and raised copper production guidance after increasing global iron ore production by 11% in the second quarter of 2014.

Germany'sBMW Group announced Wednesday a worldwide voluntary recall of 1.6 million BMW 3 Series model vehicles for risk of faulty airbag activation. Shares rose 2.9%.

Rival carmaker Volkswagen is embarking on a 5 billion euros (USD6.8 billion) cost-cutting program at its eponymous VW brand as part of efforts to shore up profitability. Shares rose 2.1%.

Deutsche Telekom gained 2%. Billionaire hedge fund manager John Paulson is backing a potential merger between Sprint Corp and T-Mobile, the Wall Street Journal reported, citing people familiar with the matter.

TelEUR2 AB shares slipped 1.9% in Stockholm despite the Swedish telecommunications firm posting better than expected quarterly earnings.

Gtech SpA gained 3.1% after agreeing to buy International Game Technology for USD4.7 billion.

According to a report from China'sNational Bureau of Statistics, gross domestic product expanded 7.5% on year in the second quarter of 2014, beating forecasts for a 7.4% increase.

On a seasonally adjusted quarterly basis, GDP gained an annualized 2.0% - also beating expectations for 1.8% and accelerating from 1.4% in the first quarter.

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Source: Alliance News

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