European Stocks Climb for Second Day, Led by Oil Shares, Minersby and
Standard Chartered slides on rights offer, UBS after results
Draghi speaks in Frankfurt after Europe markets close
European equities extended a rally that has helped them recoup about half the losses from a summer rout, buoyed by gains in energy and commodity producers.
Oil-and-gas stocks had the best gains among industry groups, following crude higher. Tullow Oil Plc jumped 18 percent amid optimism for production from its Ghana partner. Glencore Plc and Anglo American Plc rose 3.2 percent or more. Standard Chartered Plc fell 6.7 percent after posting a surprise loss and saying it will raise 3.3 billion pounds ($5.1 billion) in a rights offer. UBS Group AG slid 4.3 percent after postponing a profitability target.
The Stoxx Europe 600 Index added 0.4 percent at the close of trading, reversing earlier losses of as much as 0.3 percent. It rose yesterday after euro-area and U.S. manufacturing data beat estimates.
“It’s all about confidence,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit in Hellerup, Denmark. “People are still cautious, but now they’re slowly becoming less skeptical regarding the global economic recovery. If corporates also start to show strength in this kind of environment, that’s all you need to support a year-end rally. For now I still think we need more evidence.”
The Stoxx 600 has climbed 12 percent since a Sept. 29 low, including last month’s best gain since 2009, as European Central Bank President Mario Draghi’s said policy makers will consider additional easing in December. Draghi speaks in Frankfurt after European markets close today.
Among other stocks moving on corporate news, TDC A/S and Dufry AG gained 3.8 percent or more after reporting quarterly earnings that beat estimates.
Volkswagen AG lost 1.5 percent after U.S. regulators said their testing found some models including Porsche have equipment to alter emissions systems, allegations the carmaker denied. Porsche Automobil Holding SE lost 1.2 percent.
PostNL NV tumbled 20 percent after forecasting a drop in annual earnings, citing regulatory measures and higher restructuring costs.