News Details
search
01/02/2011 12:00 - European shares gain on positive economic outlook

On Tuesday European stocks rose for the first time in three days before a report that may show manufacturing in the U.S. grew in January for an 18th consecutive month. Asian shares and U.S. index futures gained.

 

Mining companies led gains as Chinese manufacturing expanded. Infineon Technologies AG increased 1.6 percent after reporting first-quarter net income that beat analysts’ projections and lifting its forecast. BP Plc lost 1.7 percent as earnings missed estimates.

 

European shares bounced back, with investors confidence bolstered by a bright outlook for the economy and corporate profits, with strong earnings from Infineon and ARM lifting technology firms.

 

The pan-European FTSEurofirst 300 index of top shares was up, after closing flat in the previous session prompted by concerns about political unrest in Egypt.

 

Investors were encouraged by upbeat U.S. Midwest factory activity and consumer spending figures on Monday, and will be looking ahead to manufacturing data from the euro zone and the United States due later in the session to confirm the bright outlook for economic recovery.

 

The biggest two-day rally in commodities since December pushed raw materials past stocks, bonds and the dollar for a second month, after Egyptian riots drove oil, wheat and rice higher.

 

Greek stocks advanced, pushing the benchmark ASE Index to the biggest gain among 18 western European markets, after Credit Suisse Group AG raised its rating on the country’s equities.

 

Japan's stocks bounced back from a one-month closing low, with oil-related shares and firms with high exposure to the U.S., such as Honda Motor, gaining on hopes for sustained  recovery in that market after robust earnings.  The benchmark Nikkei ended the day up 0.4 percent, after falling 1.2 percent to a one-month closing low on Monday. The broader Topix advanced 0.4 percent.

 

 

 

 

This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000.  Freephone: 80072344. email: infovfm@bov.com Internet address: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.