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25/10/2011 12:00 - European stocks fluctuate near 11-week high

On Tuesday European stocks fluctuated near an 11-week high as the region’s leaders prepared for Wednesday’s summit on the euro-area debt crisis. Asian shares and U.S. index futures were little changed.

 

STMicroelectronics NV sank 7.1 percent as Europe’s largest semiconductor maker forecast fourth-quarter revenue that trailed analysts’ estimates. UBS AG rose 2.2 percent after the biggest bank in Switzerland reported earnings that topped projections. BP Plc and BG Group Plc led energy companies higher.

 

The Stoxx Europe 600 Index added less than 0.1 percent in London, having swung between gains and losses at least six times. German Chancellor Angela Merkel and fellow leaders return to Brussels on Wednesday for a second summit in four days to discuss Europe’s bailout fund. Policy makers are jousting with banks over the size of losses they take on Greek bonds while deliberating over leveraging the fund after ruling out tapping the European Central Bank’s balance sheet.

 

The Stoxx 600 has rallied for four straight weeks, its longest stretch of gains since December, amid speculation the euro area’s political leaders will find a solution to the crisis that has Greece on the edge of a default.

 

German stocks climbed, extending the DAX Index rally from this year’s low to 20 percent.  The DAX advanced 0.4 percent in Frankfurt, having earlier dropped as much as 0.7 percent. The benchmark measure on Monday rose to its highest level since the 5th August. The index has surged 20 percent from this year’s low on the 12th September.

 

Asian stocks swung between gains and losses as investors await the results of a European summit tomorrow where leaders are expected to hammer out details on enhancing the region’s bailout fund.   Japan’s Nikkei 225 Stock Average fell 0.9 percent today.

 

 

 

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.