European Stocks Rise for 5th Day as Earnings Trump Greek PlungeNamitha Jagadeesh and Sofia Horta e Costa
European stocks climbed as improving earnings and economic indicators outweighed losses in Greek shares that resumed trading after a five-week suspension.
Heineken NV and Commerzbank AG climbed at least 2.3 percent after their results beat estimates. TomTom NV added 2 percent after people familiar with the matter said it’s exploring options that could lead to a sale. National Bank of Greece SA and Piraeus Bank SA slumped 30 percent, leading a record 16 percent drop in the ASE Index, as trading resumed with restrictions in place.
The Stoxx Europe 600 Index rose 0.8 percent to 399.44 at the close of trading. The equity measure earlier extended an advance after final readings showed output in Germany and the euro region increased more than initially estimated.
“I’m still looking for stock prices to move higher -- the short-term outlook looks pretty favorable for risky assets,” said Thomas Thygesen, head of cross-asset strategy at SEB AB in Copenhagen. “Today’s manufacturing data confirms that Greece has not been a setback for growth in Europe. For Greek markets it has just been an accumulation of bad news for weeks.”
The Stoxx 600 capped its longest winning streak in two weeks, after climbing 4 percent in July as concern over Greece faded and companies announced deals and earnings. It briefly pared gains on Monday after a report showed U.S. manufacturing expanded less than forecast this month.
Among other stocks moving on corporate news, PostNL NV jumped 6.8 percent after posting profit that beat predictions. Rolls-Royce Holdings Plc gained 5.9 percent after people familiar with the matter said activist fund ValueAct Capital Management sees substantial potential for its profit growth. Abengoa SA tumbled 31 percent after announcing a capital increase.
Commodity shares fell the most among 19 Stoxx 600 groups, with Anglo American Plc and Glencore Plc declining more than 3.6 percent. Reports on Chinese manufacturing signaled a slowdown is deepening in the world’s second-biggest economy.
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