ERICSSON’S cost-cutting plan and KBC Groep’s better-than-estimated earnings helped European stocks rebound from an intraday drop led by energy producers and utilities.
The Stoxx Europe 600 index gained 0.2 percent to 335.86 at the close of trading, after rising as much as 0.6 percent and falling as much as 0.4 percent. The gauge tumbled 1.1 percent yesterday, the biggest slide in four weeks, as banks retreated amid concern that prosecutions and penalties will widen in a probe into the rigging of exchange rate benchmarks.
“Markets are concentrating on company news at the moment, rather than macroeconomic or geopolitical news,” Herbert Perus at Raiffeisen Capital Management said. “Stocks of companies with good numbers are proceeding higher and those with bad numbers are underperforming. This is a good sign for normalisation of market-participant behaviour.” The Stoxx 600 has rebounded 8.3 percent from this year’s low on October 16. – Bloomberg