European Stocks Rebound on Boost From Earnings, Economic DataBy
European stocks gained for the first time in four days as companies including BP Plc and Rolls-Royce Holdings Plc reported better-than-forecast profit and data signaled a robust euro-area economy.
The Stoxx Europe 600 Index rose 0.6 percent the close. Gross domestic product in the 19-country region rose 0.6 percent in the second quarter, in line with estimates, while manufacturing PMI also showed expansion.
A long-awaited earnings revival has boosted European equities in 2017, even though a recent rally in the euro is stoking concern that it could derail the recovery. The strength of the shared currency has pushed earnings revisions into negative territory, according to a Citigroup Inc index. The Stoxx 600 has fallen 4.1 percent from a peak in May.
- BP rose 2.4 percent, pushing energy shares to the best performance among industry groups, while Rolls-Royce jumped 10 percent after first-half profit more than doubled. Rolls-Royce was the biggest contributor to gains in the Stoxx 600.
- Direct Line Insurance Group Plc climbed 5.5 percent after the insurer said it will aim to grow its dividend by 2 percent to 3 percent every year.
- CYBG Plc added 9.3 percent as the lender said it mortgages increased in the third quarter, while its net interest margin improved.
- Man Group Plc rose 5.4 percent after the hedge fund reported record assets under management.
- Intertek Group Plc surged 9.2 percent after reporting better-than-expected sales and profitability for the first half.
— With assistance by Cormac Mullen, and Elena Popina