Europe Stocks Halt Two-Day Drop as German Equities Reverse LossNamitha Jagadeesh and Sofia Horta e Costa
German equities swung to gains from losses, helping erase an intraday decline in European stocks.
The Stoxx Europe 600 Index added less than 0.1 percent to 388.98 at the close of trading, after plunging as much as 1.8 percent. A drop in oil and metal prices sent commodity shares tumbling, while travel companies gained. The Stoxx 600 has fallen 6.1 percent from a record in April, when valuations were at the highest in at least a decade.
“There’s a time for rallies to take a break,” said Ralf Zimmermann, an equity strategist at Bankhaus Lampe KG in Dusseldorf. “I would still expect some more downside for European stocks.”
European stocks fell earlier amid a global rout in equities and bonds, with bunds sliding as investors turned against record-low yields. Germany’s DAX Index climbed 0.5 percent, erasing losses of as much as 1.6 percent as SAP SE and Volkswagen AG added more than 1.6 percent.
The FTSE 100 Index lost 0.7 percent as Britons voted in the country’s most uncertain election since World War II. The first indication of the results will come in an exit poll for broadcasters that will be released at 10 p.m. local time.
Greece’s ASE Index climbed 3 percent for a second day of gains, with National Bank of Greece SA and Alpha Bank AE up more than 6.7 percent. The country’s government must show progress in debt talks with creditors or risk its banks facing tighter liquidity rules, officials familiar with the matter said. Euro-area finance ministers next meet on May 11.
Ryanair Holdings Plc and IAG SA climbed at least 2.2 percent, pushing a gauge of travel and leisure stocks to the best performance among Stoxx 600 industry groups.
Technology shares also advanced. Alcatel-Lucent SA gained 2.4 percent after saying earnings rose and Nokia Oyj, which is acquiring the vendor, climbed 4.2 percent. Dialog Semiconductor Plc jumped 9.6 percent after posting quarterly results that beat estimates. Telecity Group Plc soared 22 percent after Equinix Inc. made a takeover approach.
Gamesa Corp. Tecnologica SA surged 9.5 percent after Spain’s largest wind-turbine maker said first-quarter profit more than tripled from a year earlier.
Seadrill Ltd. and Genel Energy Plc each tumbled 8.2 percent, dragging energy shares lower. A gauge of commodity producers slid 1.6 percent, with ArcelorMittal dropping 2.5 percent after cutting its full-year earnings forecast.
Siemens AG slipped 1.5 percent as Europe’s largest engineering company reported worse-than-forecast profit and said it will cut more jobs. Adecco SA retreated 6.2 percent after saying its chief executive officer and chief financial officer will leave. Metro AG slid 5.1 percent after its largest shareholder reduced its stake in the German retailer.
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