European Stocks Climb as Greek Shares Rebound, Carmakers Advance

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A gain in automakers pushed European stocks higher, as Greek equities reversed a drop.

The Stoxx Europe 600 Index rose 0.4 percent to 398.09 at the close of trading in London, after falling as much as 0.7 percent. It climbed 0.6 percent earlier. Greece’s ASE Index added 1.6 percent, erasing a 2.7 percent drop after a report that the European Commission is proposing a deal compromise. Porsche Automobil Holding SE and Volkswagen AG advanced more than 3 percent as the euro weakened, sending Germany’s DAX Index up 1.3 percent.

“Equities, right or wrong, feel ‘protected’ by ECB QE,” said Steen Jakobsen, chief investment officer at Saxo Bank A/S in Hellerup, Denmark. “The market is going to church praying the issue with Greece will go away. Normally not the best strategy, but for now it seems to work.”

European shares rebounded on Monday after the Stoxx 600 dropped 0.9 percent last week as the euro gained, bonds tumbled and economic data in the U.S. missed estimates. The European benchmark index lost 4.3 percent from its record in April through Friday, trimming its annual advance to 16 percent.

Stoxx 600 health-care companies advanced 1.2 percent on Monday. Orpea added 2.9 percent after the nursing-home operator said it will buy Celenus Kliniken, a provider of rehabilitation and psychiatric centers. Fresenius SE added 3.3 percent.

Swatch, Transocean

The Swiss Market Index rose 1 percent. Swatch Group AG gained 3.1 percent as Credit Suisse Group AG raised the stock to the equivalent of a buy rating. Transocean Ltd. fell 1.3 percent, reversing an earlier gain of 3.5 percent as European energy companies declined.

Among other stocks moving on corporate news, Fresnillo Plc climbed 5.4 percent after saying its silver production target for 2018 remains in place. Marks & Spencer Group Plc gained 2.3 percent after a report that the retailer may return cash to shareholders. Aveva Group Plc jumped 9 percent after the Sunday Times said Schneider Electric SE has held talks with bankers about a bid for Aveva.

Edenred slid 1.8 percent after the French company that sells prepaid meal vouchers said its chief executive officer will leave on July 31. OMV AG tumbled 8.3 percent as the refiner reported earnings that missed estimates. Plus500 Ltd. sank 36 percent after the British trading platform imposed restrictions on some client accounts as part of a review to comply with U.K. money-laundering rules.

Italy’s FTSE MIB Index lost 1.2 percent, with Banca Monte dei Paschi di Siena SpA falling 3.9 percent.

The volume of Stoxx 600 shares changing hands was 21 percent lower than the 30-day average.

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