European Shares Climb as Miners Gain, Investors Assess Earnings

European Stocks Rise Marginally
  • Anglo American leads commodity producers up on diamond outlook
  • Alcoa kicks off U.S. earnings season with warning on demand

European stocks rose for a third day in volatile trading, with commodity and energy producers surging on rising prices, while investors looked to earnings for indications of the health of euro-area companies.

Anglo American Plc jumped 9.2 percent, pushing miners to the best performance of the 19 industry groups on the Stoxx Europe 600 Index, after its De Beers unit forecast stronger diamond sales, and metals advanced. Energy companies gained as oil increased. LVMH Moet Hennessy Louis Vuitton SE added 1.5 percent, reversing earlier declines sparked by worse-than-forecast sales.

The Stoxx 600 rose 0.5 percent to 334.64 at the close of trading, after swinging between gains of as much as 0.6 percent and losses of 0.7 percent. The rally that pushed the index to a two-month high in March has faded amid renewed concerns about the strength of the global economy. It capped a fourth week of declines on Friday and is now trading near its lowest valuation relative to U.S. equities in more than a year.

“Investors are confused and don’t see where to go,” said Michael Woischneck, an equities fund manager who oversees the equivalent of $166 million at Lampe Asset Management in Dusseldorf, Germany. “Earnings will come in line but the outlook will be subdued, which isn’t what the markets are hoping for. It’s central banks who really determine where we are going.”

Investors are turning their attention to earnings after Alcoa Inc. unofficially kicked off the U.S. reporting season on Monday. The aluminum producer fell after lowering its forecast for global demand. Tesco Plc, Sodexo SA and Casino Guichard Perrachon SA are among European companies scheduled to post earnings this week. Analysts forecast profit at Stoxx 600 members will decline 2.8 percent in 2016.

Among stocks moving on corporate news, Rocket Internet SE rose 6.4 percent after selling its stake in Lazada Group SA to Alibaba Group Holding Ltd. Accor SA added 5.6 percent after China’s Jin Jiang International (Holdings) Co. was said to be considering increasing its stake in the French hotelier.

Intesa Sanpaolo SpA and UniCredit SpA led Italian lenders lower with losses of more than 4 percent after a report that the newly-announced bad-bank fund will have commitments of between 3 billion euros ($3.4 billion) and 6 billion euros.

Network-equipment maker Ericsson AB and Nokia Oyj declined at least 1.2 percent after U.S. peer Juniper Networks Inc.’s first-quarter profit and revenue missed forecasts.

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