European stocks rally
On Thursday European stocks were poised to snap a five-day losing streak amid a broad-based rally. The pound declined as better-than-expected manufacturing data failed to offset political risk before the impending election, and crude bounced.
All 19 industry groups on the Stoxx Europe 600 Index advanced, helped by media companies after Barclays upgraded Auto Trader, the online vehicle market place, and said fears for the used car market have been overdone. Energy shares also rose as oil bounced in the wake of data pointing to a bigger-thanexpected drop in U.S. stockpiles. The euro fell after two days of gains while the dollar edged higher. China’s onshore yuan headed for the biggest four-day advance in almost 12 years amid speculation policy makers are trying to discourage bets against the currency.
Meanwhile, in Asia data showed capital spending in Japan topped estimates during the first quarter, while corporate profits jumped 27 percent. In China, the weakness in the Caixin manufacturing gauge with a smaller sample size contrasts with the government’s reading Wednesday showing the manufacturing PMI was steady last month.
The MSCI Asia Pacific Index rose 0.3 percent, after capping its fifth straight monthly gain for the longest winning streak since 2013. Japan’s Topix rallied 1.1 percent as capital spending topped estimates.
The Stoxx Europe 600 Index advanced 0.5 percent as of 10:11 a.m. in London, after finishing May with a 0.8 percent increase. Futures on the S&P 500 added 0.1 percent. The underlying gauge fell 0.1 percent Wednesday, trimming its May gain to 1.2 percent. It closed Friday at a record.
West Texas Intermediate crude oil advanced 1.3 percent to $48.96 a barrel, rebounding from a 2.7 percent drop in the previous session. Gold dropped 0.2 percent to $1,266.99 an ounce, giving back some of Wednesday’s 0.5 percent gain. 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.