European shares up on commodity gains
Published 11/08/2015 | 02:30
European stocks advanced as technology and resource companies rebounded, while investors speculated on the possibility of Chinese stimulus.
Mining companies BHP Billiton and Rio Tinto rose at least 1.5pc, leading commodity producers to the best performance of the 19 industry groups on the Stoxx 600.
By the close in Dublin yesterday, the ISEQ Overall Index was little changed, rising fractionally by 0.05pc or 3.16 points to end the trading day at 6,587.33.
The leaders included fruit company Fyffes, which rose 1pc to €1.46, while building materials group CRH increased 1.2pc to €27.79.
On the other side of the board, the laggards included shipping and transport group IFG, which fell 4.7pc to €2.05, while speciality baker Aryzta dropped 2.8pc to €46.56.
Elsewhere, the Stoxx Europe 600 Index climbed 0.7pc to 399.82 at the close of trading, reversing earlier losses of as much as 0.7pc. China's stocks surged the most in a month amid speculation that the government will act to prop up growth following a wider-than-expected drop in exports.
Shares also benefited from expectations that mergers of state-owned enterprises may be accelerated to bolster economic growth.
"The markets are watching China quite closely as the latest data were rather disappointing, and are now speculating on a Chinese stimulus package," said Christian Zogg, a fund manager at LLB Asset Management in Vaduz, Liechtenstein.
"Lower interest rates should boost GDP growth and EPS growth."
Among European stocks moving on corporate news, Banco Popolare SC increased 3.6pc after late Friday posting better-than-expected second-quarter earnings.
Greece's ASE Index rose for a third day, advancing 2.1pc for the best performance among western-European markets.