London Stocks End Higher On Manufacturing Data
FTSE 100 closes up 1.8% at 5874.89, with mining shares leading the advance. Capital Spreads says that in a relatively volatile session that started positively before looking like it might reverse into a decline following poor labor data from the euro zone, the US joined the party and complimented the UK manufacturing figures. The US ISM data for March beat expectations. Xstrata ends up 2.7% and Rio Tinto up 3.2%. “There’s no question that equities continue to face many risks that could hamper further gains, but for as long as we see economic data like the numbers we’ve seen today, we could before long be testing the highs of the year” trader says.
Frankfurt Stocks Close Firmly Higher
DAX closes 1.6% higher at 7056.65, as stocks react to a better-than-expected reading of the March ISM manufacturing purchasing index in the U.S., which comes in at 53.4, traders say. “Due to the sturdy order situation, companies’ eagerness to hire new employees is at its highest since June 2011,” an analyst notes. Earlier Monday, sentiment was weighed down by euro-zone March manufacturing PMI, which fell to a three-month low of 47.7. Adidas is the leading gainer on the DAX, up 4.4%, followed by Merck, up 4.3%, and Fresenius, up 3.5%. Tuesday’s macroeconomic data releases include euro-zone PPI and the third estimate of EU 4Q GDP at 0900 GMT, New York ISM report on business at 1345 GMT, and the Ifo euro-zone economic outlook at 1400 GMT.
Paris Stocks End Higher
CAC-40 ends 1.1% higher at 3462.91, rising in afternoon trading following the encouraging US ISM manufacturing figure, says a Paris-based trader. After opening higher on better-than-expected manufacturing data from China, France’s benchmark index slid mid-session following Europe’s ISM releases, the trader adds. Alstom leads the CAC-40, up 3%, after booking a EUR900 million order. Total ends 2.3% higher amid efforts to stem the gas leak at its Elgin platform. Car makers fall following a double-digit drop in French new car registrations year on year; Peugeot ends down 3.3% and Renault ends 1.3% lower.
Zurich Stocks Close Higher
SMI closes up 1% at 6299.38 as the index brushes off negative employment and manufacturing data from Europe. Nearly all stocks finish in positive territory, buoyed also by the Swiss purchase managers index, which beat expectations. Swatch Group and Richemont both end up 2% and are the day’s biggest gainers, following the better-than-expected Chinese purchase manager’s index, which allays some fears of a hard landing in the Chinese economy. The only faller is Holcim, down 0.1%, after reports say new CEO Fontana will have to restructure the cement maker’s European business. A trader says the market is now used to negative news from Europe and will likely operate in the 6200 to 6300 range this week.
Amsterdam Stocks End Higher
AEX ends up 0.9% at 326.39 following higher equity markets in the US after a better-than-expected ISM manufacturing purchasing index. SBM Offshore was the biggest gainer and ends up 3.3% after it says it signed contracts for the lease and operation a floating production and storage unit offshore Brazil; Goldman Sachs also raises its target price for SBM. TomTom was the biggest loser and ends down 3.1% after it confirmed that customers are having problems receiving data on their personal navigation devices.
Nordic Stocks End Higher
Nordic equity markets close higher as U.S. economic data offer support. In contrast with a weak reading for the sector in Europe, the U.S. ISM manufacturing index shows surprising strength as the March report beats forecasts. In the euro zone, manufacturing activity worsened in March. OMXN40 ends up 1.8% at 1024.53 and OBX closes 1.1% higher at 398.67. Novo Nordisk ends 5.6% higher amid a newspaper report the company plays down market worries over U.S. approval for its obesity drug. Ratos, divesting its stake in pest-control company Anticimex for $232 million, ends up 1.2%. Focus Tuesday will be on U.S. factory orders, due at 1400 GMT, and FOMC meeting minutes at 1800 GMT. In the Nordic region, TeliaSonera hosts an AGM starting 1200 GMT.
Athens Stocks Close Lower, Banks Slump
SE ends 2.1% lower at 713.66 on low turnover of EUR32 million. The market continues to search for direction as the details for recapitalizing the Greek banking system are still vague. “[The market awaits the details] of the Greek banks’ recapitalization, which should be out next week, the upcoming FY’11 results announcement of the Greek banks on April 20th and the national elections,” says Alpha Finance, adding that no major news is expected this week. The banking sector index closes in the red for the tenth consecutive session, down 8.6%. National Bank ends down 8.3%, Alpha Bank slides 11.1%, Eurobank and Piraeus both end down 14.3%.
StockMarketNews Research Team