Eurostoxx 50: 2,369.07 (+31.56) Frankfurt DAX: 6,055.27 (+84.31) Paris CAC: 3,220.46 (+49.12)EUROPEAN STOCKS climbed to their highest level in 11 weeks yesterday, as signs of stronger growth in China and Japan outweighed a sell-off in Greek lenders after a meeting of euro-area leaders discussed the region's debt crisis.
The benchmark Stoxx Europe 600 Index rose 1.3 per cent in London. The gauge has rallied for four-straight weeks, its longest stretch of weekly gains since December.
“The picture coming through from China still remains positive, but the wider issue of what’s happening in the euro zone continues to be the main area of debate,” said Henk Potts, an equity strategist at Barclays Wealth in London. “There is hope that we will start to see some concrete proposals from policy makers.”
Stocks rallied in Asia yesterday after a report showed that China’s manufacturing may expand in October, snapping the longest contraction since 2009.
Mining companies were the biggest gainers on the Stoxx 600.
BHP Billiton, the world’s largest mining company, gained 5.2 per cent to 1,996p, Rio Tinto soared 7.1 per cent to 3,373.5p and Xstrata rose 6.8 per cent to 1,016p.
TomTom surged 19 per cent to €3.62, its biggest advance since 2009, after Europe’s biggest maker of portable-navigation devices reported third-quarter net income of €28.9 million. That beat the average analyst estimate for €15.9 million of profit in a Bloomberg survey.
Greek banks led declining shares as National Bank of Greece, the country’s largest lender, plunged 21 per cent to €1.60, its biggest drop since at least 1992.
EFG Eurobank Ergasias slumped 20 per cent to 63 cents, its biggest plunge since at least 1999.
Luxembourg’s Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said talks on the private sector’s involvement in a second aid package for Greece have focused on losses of as much as 60 per cent for bondholders.
Elsewhere, Nobel Biocare Holding soared 14 per cent to 11.38 Swiss francs, the largest jump since October 2002.
Swatch climbed 4.8 per cent to 373.50 Swiss francs, its highest price in a month. – (Bloomberg)
