RTTNews - The European markets rose for the second day on Wednesday, as energy and mining stocks gained after crude oil and metals prices climbed.
British manufacturing output recorded growth for the second straight month in April signaling that the economy is on the road to a gradual recovery. U.K.'s Office for National Statistics said manufacturing output rose 0.2% in April from the previous month, slightly more than the expected 0.1% increase. The statistical office revised the initial decline estimated for March to a 0.2% increase, which turned out to be the first growth in manufacturing output since February 2008.
Hong Kong's Ming Pao Daily reported Chinese industrial output grew 8.9% in May, citing unidentified market sources.
Consumer prices in China were down 1.4% year-on-year in May, data released by the National Bureau of Statistics showed. Prices dropped for the fourth straight month. The data was roughly in line with analyst expectations for a 1.3% annual decline following the 1.5% fall in April.
The National Bureau of Statistics also said China's producer prices plummeted 7.2% annually after the 6.6% decline in the previous month. It was the sixth consecutive month of decline.
The U.S. Commerce Department said in a report that the trade deficit widened to $29.2 billion in April from a revised $28.5 billion in March. Economists had expected the deficit to widen to $29.0 billion from the $27.6 billion originally reported for the previous month.
Crude for July delivery rose $1.06 to $71.07 a barrel on the New York Mercantile Exchange, by the time the European markets closed. The contract hit as high as $71.79 a barrel earlier in the session.
The FTSEurofirst 300 index of pan-European blue chips closed 1.20% higher at 879.98 points, while the narrower DJ Stoxx 50 index rose 1.15% to 2,169.74 points.
Around Europe, the U.K.'s FTSE 100 index surged up 0.73% to 4,436.75, while France's CAC 40 index rose 0.56% to 3,315.27 and Germany's DAX index climbed 1.07% to 5,051.18.
Heavily weighted oil stocks rose after crude oil prices advanced. BP, Europe's biggest oil company, added 0.6%, while Royal/Dutch Shell, the second biggest, and Total, the third biggest, both surged up 0.80%.
Similarly, mining stocks edged higher after after lead, nickel, tin and zinc prices rose in London. BHP Billiton, the world's biggest miner, surged up 2.6%, while Anglo American, the second biggest, rose 1.3% and Rio Tinto, the third biggest, climbed 6.6%.
Copper miner Antofagasta rallied 4.6% after the company said it is on track with expansion plans under which output will jump 60% by 2011.
Inditex, Europe's largest clothing retailer, rallied 5.1% after the company reported revenue growth in the early weeks of the second quarter.
Royal Philips Electronics, Europe's biggest maker of consumer electronics, rose 2.6% after the company's Chief Executive Officer Gerard Kleisterlee said the company is in a good position to benefit from an economic recovery.
Siemens, Europe's largest engineering company, rose 1.7% after the company confirmed its sales and earnings forecasts for the fiscal year.
Fiat, Italy's largest automaker, climbed 4.6%, as the company finalized a global strategic alliance with bankrupt U.S. automaker Chrysler Group LLC after the U.S. Supreme Court paved the way for the deal. Fiat would be holding 20% of the newly formed Chrysler, which could be later raised to 35%, on satisfying certain milestones.
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