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European stocks rise for second day

May 10 2016 09:52
Namitha Jagadeesh and Carolynn Look

London - European shares rebounded further as investors speculated a selloff that spurred the worst weekly decline since February was overdone.

Earnings reports were also in focus. Credit Suisse Group AG led lenders higher, rallying 5.8% after posting a smaller loss than analysts estimated. Pandora A/S jumped 7.4% after reporting better-than-projected results and raising its full-year forecast.

A rebound in copper pushed miners to the biggest gains among industry groups, with ArcelorMittal and Anglo American up at least 2%.

The Stoxx Europe 600 Index added 0.8% in London, as nine out of ten shares rose. The benchmark closed 0.5% higher yesterday amid optimism over continued central-bank support, while giving up some intraday gains as oil fell.

The Stoxx 600 is rising this week after falling 5.4% from an April 20 peak. A rally that pushed up the gauge 16% from a February low unravelled as analysts slashed estimates to call for a profit decline this year, and disappointing economic reports cast a pall on prospects for global growth.

Still, weak US data last week added fuel to speculation that the Federal Reserve will raise interest rates at a slower pace. Traders are now pricing in little chance of higher borrowing costs in June, and less than even odds of a hike in the next nine months.

Luxury shares advanced after Credit Suisse raised its recommendation on the group to overweight, similar to buy, from underweight. LVMH and Christian Dior SE climbed more than 2%.

ThyssenKrupp lost 2.7% after a steel glut brought on by Chinese exports led the company to cut its profit forecast.

european markets  |  equities  |  markets


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