- Measure of future volatility falls even amid index swings
- Worst is over, says Lampe Asset Management's Woischneck
European traders got some respite from the rout that has erased most of this year’s equity gains.
The Stoxx Europe 600 Index added 0.3 percent to 353.86 at the close of trading. While the equity gauge fluctuated between gains of 1.2 percent and losses of 0.6 percent, a measure tracking expectations for future swings dropped after a three-day increase.
“Stocks have gotten hammered and after the decline yesterday it’s only natural to see a slight rebound,” said Michael Woischneck, who helps oversee the equivalent of $7.1 billion at Lampe Asset Management GmbH in Dusseldorf, Germany. “I think the worst is behind us, we’ll tinker around these levels but we won’t test the lows again. We will get more data from China and we will see central banks acting. They can’t ignore the situation in international markets.”
The Stoxx 600 extended its plunge from August on Tuesday amid growing concern that China’s economy is faltering, just as the Federal Reserve gets ready to increase interest rates. The equity measure is now 15 percent below the record it reached in April, sending its valuation to 15.2 times estimated profit, lower than U.S. shares. It’s pared its gains for the year to 3.3 percent from as much as 21 percent.
Getinge AB led health-care stocks higher after saying it plans a program to improve cost efficiency. GlaxoSmithKline Plc rose 1.9 percent, contributing the most to the Stoxx 600’s gain. UniCredit SpA and Intesa Sanpaolo SpA led banks ahead. Unibail-Rodamco SE pushed a measure of real estate companies to the best performance of the 19 industry groups on the equity benchmark.
Among stocks moving today on corporate news, Telefonica SA fell 2.4 percent as RBC Capital Markets downgraded the telecommunications provider to underperform, similar to sell, from outperform.
Alstom SA advanced 2.3 percent as people familiar with the matter said that General Electric Co. is poised to win European regulators’ approval for its purchase of the French company’s energy business in the coming days.
Delta Lloyd NV dropped 2.9 percent to a record low after money manager David Einhorn, one of the insurer’s largest shareholders, reduced his stake.