Euro stocks gain after US growth tops forecasts
European stocks gained, erasing earlier losses, after a report showed second-quarter economic growth in the US was revised down less than forecast.
The Stoxx Europe 600 Index rose 0.5pc to 250.88 at 1:46pm in London, having earlier lost as much as 0.7pc.
The gauge has fallen 0.5pc this week after worse-than- estimated US home-sales and durable-goods data cast further doubt on strength of the world’s largest economy.
The drop has left the gauge trading near the cheapest valuation since 2008, according to data compiled by Bloomberg.
The US economy grew at a 1.6pc annual rate in the second quarter as companies reined in inventories and the trade deficit widened, figures from the Commerce Department showed today.
The revised increase in gross domestic product was bigger than the 1.4pc median forecast of economists surveyed by Bloomberg News and compares with a 2.4pc estimate issued last month.
Federal Reserve Chairman Ben Bernanke and European Central Bank President Jean-Claude Trichet will address the Fed’s annual symposium in Jackson Hole, Wyoming later today.
Bernanke is due at 10am New York time, with Trichet following with a speech over lunch at 2:50pm, as investors speculate about the need for additional stimulus measures from central banks to prevent the economic recovery from stalling.