EUROPE MARKETS: Credit Suisse, Miners Push Stoxx Europe 600 Toward Highest Close Since September
December 07 2016 - 5:50AM
Dow Jones News
By Carla Mozee, MarketWatch
PostNL rejects bid offer; BMPS rallies
European stocks advanced Wednesday, with banks and mining shares
among the session's big winners, putting shares in line for a third
straight gain ahead of the European Central Bank's policy meeting
on Thursday.
The Stoxx Europe 600 index was higher by 0.8% at 347.20, on
track for its highest close since Sept. 22, according to FactSet
data. The index on Tuesday ended 1% higher
(http://www.marketwatch.com/story/european-stocks-step-higher-as-banks-stage-a-revival-2016-12-06),
aided by gains for banks.
Financial and basic materials topped the sector gainers
Wednesday. Only the utilities sector lost ground, after gaining in
the previous session.
Banks sustain rally: Among financials, bank shares popped
higher, led by a 5.4% climb for Credit Suisse Group AG (CSGN.EB)
(CSGN.EB) . Chief Executive Tidjane Thiam said the Swiss banking
heavyweight's restructuring "strategy is working," after making
more job cuts than anticipated. But the bank lowered some profit
targets
(http://www.marketwatch.com/story/credit-suisse-cuts-targets-says-revamp-is-working-2016-12-07)
that it set last year, while holding to the goals it set for wealth
management units.
Meanwhile, Italian bank stocks pushed higher after reports
Wednesday that the Italian government is taking steps to rescue
lender Banca Monte dei Paschi Siena SpA
(http://www.marketwatch.com/story/bmps-jumps-11-on-hopes-of-16-billion-rescue-loan-for-italian-banks-2016-12-07)(BMPS.MI)
and other struggling lenders. The FTSE Italia All-Share Banks
Sector Index was up by 2.7%, building on Tuesday's 9% rally. Off
the Stoxx 600, BMPS shares surged 8%.
Shares of Italy's BPER Banca SpA (BPE.MI) shot up 6.5%, moving
toward the top of the Stoxx 600. Meanwhile, Italy's largest lender,
UniCredit SpA (UCG.MI) , jumped 4.6%.
Worries about the health of the Italian economy and the
integrity of the eurozone have grown after voters rejected Prime
Minister Matteo Renzi's reform proposals. Renzi's resignation,
announced after Sunday's referendum, is expected to be effective on
Dec. 9, according to Reuters.
Read:How Italy's 'no' vote might be the ECB's silver lining
(http://www.marketwatch.com/story/how-italys-no-vote-might-be-the-ecbs-silver-lining-2016-12-05)
Also: The other loser in Italy's vote -- its big banks
(http://www.marketwatch.com/story/the-other-loser-in-italys-vote-its-big-banks-2016-12-05)
Investors widely expect the European Central Bank to extend its
stimulus for the eurozone, including its bond-buying program, when
it meets Thursday.
Miners: Rio Tinto PLC (RIO) (RIO) (RIO) was a top performer
Wednesday, with shares up 4% after Credit Suisse raised the
diversified miner's rating to outperform from neutral.
Credit Suisse said it's maintaining a "positive view" on the
mining sector, saying it expects "apparent demand trends to
continue to recover following the aggressive destock through
2014-15," among other drivers for the industry.
Gains for mining shares helped lift the U.K.'s FTSE 100 by 1.3%
(http://www.marketwatch.com/story/ftse-100-climbs-1-powered-by-mining-shares-2016-12-07).
Other movers: PostNL NV shares (PNLYY) tumbled 10% after the
Dutch mail delivery company against rejected a takeover bid from
Belgian postal service Bpost SA (BPOST.BT) . Bpost shares were up
0.6%.
(http://www.marketwatch.com/story/the-other-loser-in-italys-vote-its-big-banks-2016-12-05)Indexes:
In Frankfurt, the DAX 30 index leapt 1.4% to 10,924.64, and
France's CAC 40 index moved up 1% to 4,679.90. Spain's IBEX 35 rose
0.3% to 8,919.30.
The euro was trading at $1.0717, not far from $1.0715 it bought
late Tuesday in New York.
(END) Dow Jones Newswires
December 07, 2016 05:35 ET (10:35 GMT)
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