- Carmakers climb as China auto sales increased in April
- Pandora jumps on better-than-forecast profit, raised outlook
European shares rebounded further as investors speculated a selloff that spurred their worst week since February was overdone, and banks advanced.
Credit Suisse Group AG climbed 5 percent after posting a smaller-than-estimated loss. Greek lenders rose on optimism the country will reach an accord on debt relief. Carmakers also climbed, buoyed by an increase in China’s monthly passenger-vehicle sales. Volkswagen AG and PSA Peugeot Citroen gained at least 3.7 percent.
The Stoxx Europe 600 Index added 0.9 percent at the close of trading. Speculation the Federal Reserve will slow its pace of rate increases amid weak U.S. data bolstered shares yesterday, while the euro weakened against the dollar for a fifth straight day after last week reaching its highest level since August.
“People are slightly less risk averse now than they were end of April,” said Michael Hewson, a London-based market analyst at CMC Markets Plc. “Credit Suisse earnings weren’t great, but they were better than the worst of expectations. Still, the optimism is a little premature. Economic data hasn’t been very convincing.”
The Stoxx 600 is rising this week after falling 5.4 percent from an April 20 peak. A rally that pushed up the gauge 16 percent from a February low unraveled as analysts slashed estimates to call for a profit decline this year, and disappointing economic reports cast a pall on prospects for global growth.
Still, that has led to expectations that monetary policy will remain supportive for longer. Traders are pricing in little chance of higher U.S. borrowing costs in June, and less than even odds of a hike in the next nine months.
Greece’s ASE Index advanced 3.2 percent for the biggest gain among western-European markets. Euro-region finance ministers in Brussels outlined plans to seek International Monetary Fund backing for an accord to relieve the country’s debt, and will reconvene in two weeks to finalize the negotiations.
Among other shares active on corporate news, ING Groep NV gained 2.7 percent after its earnings beat estimates. Pandora A/S jumped 11 percent after the Danish jeweler raised its full-year profit forecast.
Hotel Chocolat Group Ltd. surged 28 percent on its London trading debut. Luxury shares advanced after Credit Suisse raised its recommendation on the group to overweight, similar to buy, from underweight, citing cheaper valuations. LVMH and Christian Dior SE climbed more than 1.6 percent.
Natixis SA tumbled 6.9 percent after the French lender said quarterly profit dropped by almost a third. Nokia Oyj slid 7.2 percent after its revenue missed analysts’ estimates and costs related to its purchase of Alcatel-Lucent SA pushed the company to a net loss.