European stock advanced offsetting previous two day retreat as investors are following the European Central Bank report decision about financial stimulus program. Adding to that Portugal politicians managed to keep government together after resignation of two of the ministers of coalition.
We’ve seen slightly more positive tones out of Portugal in the last hours which gives markets some relief,” Witold Bahrke, a senior strategist at PFA Pension A/S in Copenhagen, wrote in an e-mail for Bloomberg.
The Stoxx Europe 600 Index increased 0.7% to 287.34 at 12:08 p.m. in London, compensating benchmark decline from its 2013 high on May 22. Standard & Poor’s 500 Index futures rose 0.5% today, while the MSCI Asia Pacific Index added 0.4%. U.S. markets are closed today due to celebrations of Independence Day. All major European benchmark indexes are recording gains led by FTSE 100 by 2.26% gain and DAX advancing 1.09% at 13:35 pm London time.
Recent reports on manufacturing, services and the housing market signaled that the U.K. economy is strengthening. However, the recovery isnt yet assured and bond yields rising. The Bank of England also held its benchmark interest rate at a record low 0.5%, as predicted by all 53 economists in a Bloomberg poll.
Taylor Wimpey rose 6.1% to 102.9. The U.K.’s second largest house-builder reported an operating-profit margin in its home market of more than 13%, compared with 11.2% a year earlier as Housing prices and demand in UK are jumping. It is supposed to publish first-half results on July 31. Persimmon Plc, the country’s largest home-builder, added 2.6% to 1,245. Barratt Developments Plc advanced 3.7% to 329.8.
Oerlikon rose 1.8% to 11.50 after textile machinery manufacturer said it will receive $496 million from the sale of its natural-fibers business to Jinsheng Group of China.
PSA Peugeot Citroen soared 8.1% its biggest gain since May. Goldman Sachs Group Inc. upgraded the shares of the French automaker to “buy” from “neutral”. The institution said that Peugeot will probably beat its forecasts for reducing cash consumption.
Celesio AG declined 7.9% as Jefferies Group LLC downgraded the German drug distributor to “hold” from “buy”. The shares fell the most in 21 months yesterday after the company’s board fired Chief Executive Officer Markus Pinger. The company stated reason was differences of opinion over how to manage the business.
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