European shares stay positive

On Thursday European shares gained a second day after data underscored the resilience of the American and Chinese economies, and billionaire investor Warren Buffett said he still prefers stocks to bonds. The dollar was steady as Treasury yields rose a second day.

The Stoxx Europe 600 Index followed gains in equity benchmarks from Tokyo to Sydney after U.S. equities advanced for a fourth day. The dollar was steady after rallying from the lowest in two years on Wednesday as second-quarter U.S. growth figures were revised up. Most European bonds declined, while gasoline advanced as Harvey continued to pound the energy-rich Gulf of Mexico coast, home to more than half of the U.S.’s refining capacity.

Buffett said the rally in markets over the last several years has made it harder to find bargains, but that stocks remain attractive. Adding to the mood of optimism, data Thursday showed China’s official factory gauge further strengthened in August while reports Wednesday showed U.S. second-quarter growth reached the fastest pace in two years and hiring was robust. Data on U.S. personal consumption data today and jobs tomorrow will be parsed for clues on the timing of the Federal Reserve’s next rate move.

Storm Harvey returned to land and is poised to dump more rain over Texas and Louisiana. Refineries have been battered, with more than an estimated 4 million barrels a day, or about 23 percent of U.S. refinery capacity, getting hit.

The Stoxx Europe 600 Index gained 0.5 percent as of 10:08 a.m. in London. The U.K.’s FTSE 100 Index added 0.6 percent, the most in a week. Germany’s DAX Index advanced 0.5 percent. Futures on the S&P 500 Index climbed 0.4 percent.

The Topix index rose 0.6 percent at the close in Tokyo, paring its first monthly drop since March.

Gold dipped 0.1 percent to $1,307.69 an ounce. West Texas Intermediate crude increased 0.3 percent to $46.10 a barrel.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.