Most European stocks remained unchanged, standing on five weeks of gains, amid better-than-forecast industrial output in China. Asian shares gained, while U.S. stock index stayed at record levels.
The Stoxx Europe 600 index added 0.2% to 323.04 at 12:04 p.m. in London. The benchmark index has gained for five straight weeks, trading near its highest level since 2009, as the European Central Bank unexpectedly cut its key interest rate and the Federal Reserve maintained bond purchases. UKs FTSE 100 added almost 0.2% to 6,708.42 while German DAX remain little changed, less than 0.05%.
In China, industrial production rose unexpectedly 10.3% in October from a year earlier, the National Bureau of Statistics said on November 9. That was higher than September’s 10.2% and exceeded the 10% median projection of economists. Inflation was a less-than-forecast 3.2% and producer prices fell 1.5%.
“Weve seen quite a few indicators that China’s domestic economy is picking up,” said Andrea Williams, who helps oversee 50 billion pounds ($80 billion) as head of European equities at Royal London Asset Management in London. “It feels like we’re through with the worst fears about China and the economy is back on an upwards trend. This is good for European companies. I remain concerned about valuations in Europe, though it looks like monetary support is overriding that at the moment.”
In corporate news, Deutsche Telekom AG slumped 2% to 11.12 euros as Goldman Sachs Group Inc. lowered its recommendation on the shares to “sell” from “neutral”, citing a strong rally and the likelihood of increased competition in Germany and Europe.
BSkyB lost 9.8% to 838.5 pence, companys largest drop since July 2011. BSkyB, whose channels have aired top English soccer games since the Premier League’s inception in 1992, lost out to BT in bidding for the rights to broadcast the UEFA tournaments from 2015. BT gained 0.2% to 372.9 pence.
RSA Insurance Group Plc declined 11% to 107.7 pence for its biggest drop in eight months and the largest decline in the Stoxx 600 index. The U.K.’s biggest non-life insurer by market value said it suspended three top executives at its Irish unit amid a probe into finance and claims functions.