Eurostoxx 50: 2,355.48 (+22.96) Frankfurt DAX: 5,967.20 (+52.36) Paris CAC: 3,217.89 (+30.95):EUROPEAN STOCKS climbed yesterday, extending the Stoxx Europe 600 Index's longest stretch of weekly gains in six months, as Group of 20 finance ministers meet in Paris to discuss the euro area's debt crisis.
The Stoxx 600 rose 0.8 per cent in London, extending its weekly advance to 2.7 per cent for a third week of gains.
“There is a better feel to the market,” said Paul Coffin, a fund manager at Fieldings Investment Management in London. “Stock valuations are quite low and bonds are looking a tad expensive. We’ve seen a good rally, but if Europe doesn’t show a big enough gun, it could turn out to be a case of better to travel than arrive.”
G20 finance ministers and central bankers are meeting in Paris to outline a euro-area rescue plan that may include deeper investor losses on Greek bonds and increased firepower for the International Monetary Fund.
Stocks climbed yesterday even after Standard and Poor’s downgraded Spain’s credit rating for the third time in three years as slowing growth and rising defaults threaten banks.
Wacker Chemie rallied 2.9 per cent to €75.75. Clariant, which said it raised €365 million ($506 million) by issuing three-year certificates, climbed 3 per cent to 9.69 Swiss francs.
Yara International advanced 3 per cent to 250.40 kroner.
SAP gained 2.3 per cent to €41.49 after the largest maker of business-management software said earnings and sales rose in the third quarter on rising demand for its services.
Xstrata led mining shares higher, climbing 3.1 per cent to 973.5p. Antofagasta advanced 3.5 per cent to 1,116p and Rio Tinto gained 1.7 per cent to 3,340p.
BowLeven soared 60 per cent to 120.8p, its biggest gain since 2009, after the UK-listed oil explorer focused on Africa said it discovered oil from an exploration well.
Sulzer paced declining shares, falling 8.8 per cent to 94.10 Swiss francs after the Swiss maker of pumps predicted a slowdown in order growth for the full year.
Finmeccanica lost 1.4 per cent to €5.32 after HSBC lowered its recommendation for Italy’s biggest military contractor to “underweight” from “neutral”. – (Bloomberg)
