- Banks trim gain of up to 1.1% after Morgan Stanley earnings
- Miners fall the most among industries after China GDP data
A gain in Deutsche Bank AG and positive earnings reports helped push European stocks to a two-month high.
The German lender rose 3.7 percent as it’s undertaking the biggest management reshuffle in more than a decade and splitting up its investment bank. Danone and Metro AG advanced after earnings, while miners fell as data showed China’s economy expanded at the slowest pace since 2009.
The Stoxx Europe 600 Index added 0.3 percent to 364.25 at the close of trading in London, with the volume of shares changing hands 34 percent below the 30-day average. The gauge climbed as much as 0.8 percent, before briefly erasing its gain as Morgan Stanley’s earnings report dragged European banks lower.
“The commodity complex is a bit weak,” said Veronika Pechlaner, an investment manager who helps oversee $10 billion at Ashburton Investments, part of FirstRand Group. She’s based in Jersey, the Channel Islands. “That brings us back to earnings. We need to see reassurance that next year’s numbers are OK for now. They should do better, and we hope to see more evidence of that.”
European lenders recovered their losses and closed up 0.3 percent. Analysts project companies in the Stoxx 600 will growth earnings by 2.8 percent this year, helped by a forecast 15 percent increase in bank profits.
Danone gained 2 percent after the world’s biggest yogurt maker reported third-quarter sales that beat analysts’ estimates as Chinese consumers ordered more foreign-made infant formula. German retailer Metro rose 2.5 percent after reaffirming its earnings target for the year and saying it sees good Christmas results.
Wincor Nixdorf AG surged 17 percent after Diebold Inc. said it offered 1.57 billion euros ($1.78 billion) to buy the maker of ATMs and cash registers. Fiat Chrysler Automobiles NV climbed 1.8 percent after people familiar with the matter said Ferrari NV’s initial public offering is oversubscribed.
The Stoxx 600 ended little changed last week, recovering from three days of losses toward the end. It’s rebounded 7.4 percent from a low last month and closed 12 percent below its April record.