RTTNews - The European markets rose on Wednesday after upbeat reports on manufacturing in China, Europe and the U.S. raised optimism that the global economy is in a recovery mode.
China's Purchasing Managers' Index for the manufacturing sector stayed above the threshold limit for the fourth consecutive month, pointing towards a gradual expansion in the sector, driven by stimulus measures, survey data revealed today. The manufacturing PMI rose to 53.2 in June from 53.1 in the prior month, the China Federation of Logistics and Purchasing said.
Eurozone manufacturing activity in June fell less than initially estimated, according to final data released by the Markit Economics. The Markit Manufacturing Purchasing Managers' Index for the euro area rose to 42.6 in June from 40.7 in May. It was also above the flash estimate of 42.4. The June reading thus reached its highest level since September last year.
The Institute for Supply Management said its index of activity in the U.S. manufacturing sector rose to 44.8 in June from 42.8 in May, with a reading below 50 indicating a contraction in the sector. The index came roughly in line with the expectations of economists, who forecast a reading of 44.6.
Crude for August delivery fell $0.51 to $69.38 a barrel on the New York Mercantile Exchange, by the time the European markets closed, even though latest report showed that the massive surplus of oil in the United States continued to shrink last week.
The FTSEurofirst 300 index of pan-European blue chips closed 1.82% higher at 865.66 points, while the narrower DJ Stoxx 50 index rose 1.80% to 2,136.00 points.
Around Europe, the U.K.'s FTSE 10 index surged up 2.15% to 4,340.71, while France's CAC 40 index climbed 2.44% to 3,217.00 and Germany's DAX index rose 2.01% to 4,905.44.
Mining shares gained after copper, aluminum and nickel prices rose. BHP Billiton, the world's biggest miner, added 2.5%, while Anglo American, the second biggest, surged up 3.9% and Rio Tinto, the third biggest, climbed 2.5%. Copper miner Antofagasta gained 6.3%.
Commerzbank, Germany's second biggest lender, jumped 18.6% after the parliamentary parties of Germany's ruling coalition backed a plan to establish bad banks for struggling lenders which the government hopes will spur lending and reinvigorate the economy.
Carrefour, Europe's biggest retailer, surged up 5.7% after the company announced ?4.5 billion of cost-reduction measures.
Marks & Spencer, Britain's biggest clothing retailer, rose 3.8% after the company reported its smallest quarterly sales decline in almost two years.
Metro, Germany's biggest retailer, climbed 6.2% after retail sales in Europe's largest economy unexpectedly rose for a third month in May.
Sodexo, the world's second largest caterer, gained 3.7% after the company said its third quarter sales rose 11% from last year.
International Power climbed 5.1% after the company agreed to sell its Czech business to private equity firm J&T Finance Group AS for £738 million.
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