BMW and Daimler lead gains among carmakers

Sat, Oct 8, 2011, 01:00

Eurostoxx 50:2,269.19 (+20.41) Frankfurt DAX:5,675.70 (+30.45) Paris CAC:3.095.56 (+20.19)

EUROPEAN STOCKS gained for a third day, posting a second weekly gain, as a report showed the US economy added more jobs than economists had estimated.

Bayerische Motoren Werke and Daimler led gains in European carmakers, climbing more than 1 per cent. Rio Tinto Group and Xstrata advanced with metal prices. The Stoxx Europe 600 Index added 0.7 per cent to 231.88 at the 4:30pm close in London.

The benchmark measure posted a weekly rally of 2.5 per cent amid speculation policymakers will agree to shield banks from the crisis and as the Bank of England expanded its bond-purchase program. The gauge has still retreated 20 per cent since this year’s high on February 17th and is trading at 9.8 times its companies’ estimated earnings, near the lowest since March 2009.

European stocks gained as a US report showed employers added more jobs than forecast in September and revised up hiring in the previous two months. The release also showed hours and earnings increased, helping ease concerns the US labour market is deteriorating.

Germany’s DAX Index climbed 0.5 per cent and France’s CAC 40 Index increased 0.6 per cent.

BMW and Daimler, the world’s biggest makers of luxury cars, jumped 4 per cent to €50.88 and 1.3 per cent to €33.97, respectively.

Carmakers posted the second-largest performance in the Stoxx 600, gaining 1.7 per cent. Continental surged 4.8 per cent to €46.88 as the world’s fourth-largest tyremaker plans to spend more than $500 million to build a new factory at Sumter, South Carolina, to meet increasing demand.

Rio Tinto, the world’s second-largest mining company, rose 1.1 per cent to 3,160.5 pence, while Xstrata climbed 2.8 per cent to 910.1 pence. Total, Europe’s third-largest oil producer, rose 2.9 per cent to €35.33 as crude oil increased for a third day in New York.

JCDecaux rose 2.5 per cent to €18.92 as the French outdoor-advertising company may exceed its third-quarter forecast for organic revenue growth, Kepler said after meeting with the company.

RBS and Lloyds Banking Group slid 3 per cent to 23.62 pence and 3.4 per cent to 34.7 pence, respectively. – (Bloomberg)