Eurostoxx 50:2,302.08 (+62.94) Frankfurt DAX:5,784.85 (+140.93) Paris CAC:3,256.76 (+97.02)
EUROPEAN STOCKS gained for a third day yesterday, trimming their biggest monthly drop since 2008, as US business activity and factory orders topped forecasts and Federal Reserve minutes showed some policymakers wanted to add to stimulus measures.
The Stoxx Europe 600 Index rose 2.9 per cent at the close in London.
The index has tumbled 10 per cent this month, the biggest drop since October 2008, amid concern the economic recovery is at risk.
The minutes were “taken as a good signal because the majority agreed and the Fed said it has tools that it hasn’t yet used,” said Arnaud Scarpaci, a fund manager at Agilis Gestion in Paris.
“Everyone thinks the Fed will put some sort of buying programme into action to help the economy,” he said.
National benchmark indexes gained in all of the 18 western European markets, except Greece and Iceland.
Bouygues rallied 16 per cent to €26.73, leading construction and materials shares in the Stoxx 600 to the largest increase among 19 industry groups.
Wienerberger rose 9.8 per cent to €9.94 after the world’s biggest brickmaker said second-quarter profit increased 11 per cent as sales surged.
UPM-Kymmene rose 7.5 per cent to €9.13 in Helsinki after announcing it will close mills in Finland and Germany.
A gauge of car makers surged 4.3 per cent for the second-biggest gain in the Stoxx 600.
Bayerische Motoren Werke, the largest maker of luxury vehicles, rose 3.9 per cent to €56.35 while Pirelli, Europe’s third-largest maker of tyres, climbed 6.7 per cent to €5.83.
Vivendi climbed 4.9 per cent to €16.97 as the owner of the world’s largest video-game and music companies reported second-quarter profit excluding one-time gains and costs of €884 million.
Adecco, the world’s largest temporary-staffing company, gained 4.4 per cent to 37.63 Swiss francs while Dutch rival Randstad rose 5.1 per cent to €23.96.
Deutsche Telekom dropped 7.6 per cent to €8.81, the largest decline in 15 months.
National Bank of Greece, the country’s biggest bank, tumbled 8.3 per cent to €3.09. – (Bloomberg)
