Publications
Partners
Frankfurt - European shares advanced as commodity producers rebounded on higher metals prices.
The Stoxx 600 gained 0.6% to 342.46 at 09:15. BHP Billiton and Glencore led miners to the best performance of the 19 industry groups on the equity gauge. Sliding commodity producers had weighed on equities yesterday, eroding gains to leave them little changed amid speculation over a potential increase in US borrowing costs this year.
Uncertainty over the timing of the next US rate increase is exacerbating the concerns that have hit Europe this year. Italy is struggling to get to grips with a banking crisis, while faith in the efficacy of European Central Bank stimulus to spur growth amid political turmoil has faded. The Stoxx 600 last week posted its biggest weekly selloff since before the UK referendum on European Union membership.
Despite a rebound of as much as 12% following the UK vote, the Stoxx 600 has lost 6.4% in 2016, and strategists expect it to end the year down 8.6%. At the same time, a Bank of America report showed investors have withdrawn money from the region’s funds for a record 28th straight week.
Among stocks moving on corporate news today:
Straumann added 2.3% after the medical device manufacturer raised its full-year revenue guidance. Schneider Electric rose 1.7% after people familiar with the matter said the power-equipment maker is weighing a sale of DTN, an agriculture news and data service that could be worth as much as $1.5bn.
UK homebuilder Persimmon climbed 3.8% after reporting a “robust” first half and chief executive officer Jeffrey Fairburn said he hadn’t seen any change in buyer behavior since the Brexit vote.
