Euro­pean shares close to 3-week high

Malta Independent - - FINANCIAL - This ar­ti­cle was com­piled by Val­letta Fund Man­age­ment Lim­ited, a mem­ber of the BOV Group.Val­letta Fund Man­age­ment,TG Com­plex, Suite 2, Level 3, Brew­ery Str., Mriehel BKR 3000 Freep­hone: 80072344. E-mail: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Val­letta

On Mon­day Euro­pean shares headed for a three-week high as banks surged and Royal Philips NV re­ported higher earn­ings.

Span­ish and Ital­ian eq­ui­ties led a gauge of lenders to the best per­for­mance of the 19 in­dus­try groups on the Stoxx 600. Com­mod­ity pro­duc­ers posted the sec­ond-big­gest in­crease as met­als prices gained. Philips climbed 4.6 per­cent af­ter re­port­ing a 14 per­cent in­crease in third-quar­ter profit on im­proved per­for­mances from its health-care busi­nesses.

The Stoxx 600 rose 0.5 per­cent to 345.98 at 11:05 a.m. in Lon­don, helped also by ser­vices and man­u­fac­tur­ing data show­ing euro-area eco­nomic mo­men­tum ac­cel­er­ated to the fastest pace this year in Oc­to­ber. The Euro Stoxx 50 In­dex, which tracks the re­gion’s bluechip com­pa­nies, jumped 0.9 per­cent to its high­est level since April.

The earn­ings sea­son is gath­er­ing steam, with more than 100 Stoxx 600 com­pa­nies sched­uled to re­port this week. Among those are lenders Deutsche Bank AG and Bar­clays Plc, drug­maker No­var­tis AG and car­maker Volk­swa­gen AG. An­a­lysts fore­cast a drop of 4.3 per­cent for 2016, fol­lowed by dou­ble-digit earn­ings growth in each of the next two years.

Spain’s bench­mark IBEX 35 In­dex rose 1.5 per­cent, the most among western-Euro­pean mar­kets to­day, af­ter the So­cial­ist Party lead­er­ship opted to stand aside and let act­ing Prime Min­is­ter Mar­i­ano Ra­joy take of­fice for a sec­ond term, sig­nal­ing the end of the na­tion’s 10-month po­lit­i­cal im­passe.

The MSCI Asia Pa­cific In­dex rose 0.4 per­cent, re­vers­ing an ear­lier loss. The Shang­hai Com­pos­ite In­dex jumped 1.2 per­cent on op­ti­mism Chi­nese au­thor­i­ties will boost spend­ing and has­ten re­form of state-owned com­pa­nies. Com­mu­nist Party lead­ers are gath­er­ing in Bei­jing this week for a full meet­ing of the party’s Cen­tral Com­mit­tee, or plenum, a key fo­rum for se­cur­ing broader sup­port for pol­icy moves.

Oil traded near $50 as bet­terthan-ex­pected eco­nomic data in Europe coun­tered Iraq’s de­mand that OPEC should ex­empt it from planned out­put cuts.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.