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06/09/2011 12:00 - European stocks up after biggest two-day drop since 2008

On Tuesday European stocks gained after the Euro Stoxx 50 Index’s biggest two-day drop since 2008 left it trading at the cheapest in more than two years. U.S. index futures and Asian shares declined.

 

Whitbread Plc climbed 7.3 percent as the U.K.’s largest hotel and restaurant operator said sales growth accelerated. Tele2 AB rose 3.3 percent as Credit Suisse Group AG advised buying the shares. Caja de Ahorros del Mediterraneo, the Spanish savings bank taken over by the Bank of Spain, slumped 6.8 percent after posting a first-half loss.

 

The Euro Stoxx 50 of the biggest euro-area companies rose 1 percent London after tumbling 8.6 percent over the previous two days. The gauge declined 14 percent in August amid concern global economic growth is slowing as Europe’s debt crisis spreads.

 

National benchmarks indexes gained in 15 of the 18 western European markets. The U.K.’s FTSE 100 climbed 1.3 percent, France’s CAC 40 rose 1.1 percent and Germany’s DAX Index advanced 0.9 percent.

 

The Stoxx Europe 600 Index, the regional benchmark that’s denominated in euros, increased 0.2 percent. Swiss companies from Novartis AG to Nestle SA and UBS AG weighed on the index as the franc weakened as much 8.7 percent against the euro after the nation’s central bank set a minimum exchange rate against the single European currency.

 

Ministers from Germany, Finland and the Netherlands will meet during the day to discuss a Finnish demand for collateral in a bailout for Greece, while the Italian Senate will debate an austerity plan amid a strike.

 

Japanese stocks fell for a third day, pushing the benchmark Nikkei 225 Stock Average to the lowest close since April 2009, as Europe’s worsening debt crisis saps demand for riskier assets.

 

 

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.