European Stocks Rebound on Boost From Earnings, Economic Data

BP 2Q Earnings Beat Estimates as Debt Continues to Climb

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

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