Wednesday 21 February 2018

European stocks stage rally

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

Sofia Horta e Costa

European stocks rebounded after their biggest weekly loss since December, as data showed manufacturers raised prices for the first time in eight months.

The Stoxx Europe 600 Index added 0.6 pc to 396.82 at the close of trading.

Europe's benchmark stock gauge reversed a drop of as much as 0.2pc after Markit Economics said average selling prices in the euro area climbed in April more than initially estimated.

Germany's DAX Index rose 1.4pc after falling the most since July last month.

UK and Irish stockmarkets were closed yesterday for the May Bank Holiday.

The Stoxx 600 lost 3.4pc last week as the euro rallied and the Federal Reserve left open the prospect of interest-rate increases even amid weak US economic growth.

"Last week's correction provided a good entry point for a lot of investors," said Alessandro Bee, a strategist at Bank J Safra Sarasin in Zurich. "Liquidity is still being poured into markets and the European economy is accelerating.

"The next step is to understand whether US growth is really slowing, or whether we'll get a much-needed recovery in the second quarter."

Portugal's PSI 20 Index added 1.8pc for the biggest jump among 18 western-European markets that were open yesterday.

France's CAC-40 rose 0.9pc. Greece's ASE Index rose 0.4pc, reversing a drop of as much as 2.5pc, after a 6.1pc jump in April that outpaced all western-European markets.

Greece is still far from an agreement with its international creditors.

Syngenta jumped 8.1pc amid speculation that Monsanto approached the Swiss maker of crop chemicals about a takeover.

Irish Independent

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