By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets rebounded from
sharp losses on Tuesday, boosted by solid moves for easyJet,
Kingfisher and Luxottica, while investors waited for fresh U.S.
housing and confidence data to gauge whether the U.S. economy is
recovering from an extreme winter. Soft German business-confidence
data didn't ruin the positive trading mood.
The Stoxx Europe 600 index gained 1% to 327.56, partly
recovering from its biggest one-day percentage drop in more than
two weeks, posted on Monday.
Investors in Europe largely ignored weaker-than-expected German
business-confidence numbers, with the Ifo business-climate survey
falling to 110.7 in March. The Ifo Institute said confidence among
businesses in Europe's largest economy was bruised by the tensions
in Ukraine's Crimea region and the weakness in emerging-market
economies.
Instead, the pan-European benchmark was buoyed by shares of
Kingfisher PLC , which jumped 6.6% after the do-it-yourself
retailer reported a 5% rise in fiscal full-year adjusted earnings
per share and said it will return 200 million pounds ($330 million)
to shareholders in fiscal 2015.
EasyJet PLC climbed 4.8% after the budget carrier raised its
first-half guidance, citing benefits from cost cuts and its focus
on strategic priorities.
In Amsterdam, PostNL NV rallied 6.5% to 3.27 euros ($4.52) after
J.P. Morgan Cazenove lifted the courier to overweight from neutral.
The analysts said the recent pullback in the share price appeared
overdone, with the new price target of EUR4.20, down from EUR4.55,
implying 37% upside potential.
Luxottica Group SpA picked up 3.3% after the Italian eyewear
company said late Monday it has agreed to design, develop and
distribute new versions of Google Glass.
Germany's DAX 30 index climbed 1.4% to 9,316.73, while France's
CAC 40 index gained 1.2% to 4,329.40.
The U.K.'s FTSE 100 index advanced 1.1% to 6,591.62. Stocks in
London got a lift from data showing inflation dropped further below
the Bank of England's 2% target in February. Consumer prices rose
1.7% last month, the lowest level since October 2009, likely to
enable the BOE to keep its loose monetary policy for longer. Chris
Williamson, chief Economist at Markit, said in a note that
inflation is likely to stay below target for some time, citing
lower import costs due to a stronger pound, as well as declining
energy prices.
"This means policy-makers have greater leeway to keep interest
rates at the record low of 0.5% for longer, as the economy goes
through a 'sweet spot' of robust economic growth, falling
unemployment and low inflation," he said.
Later in the day, attention turns to the U.S., where a raft of
data will signal whether the housing market is recovering from the
harsh conditions this winter. The S&P/Case-Shiller 20-city
composite and the FHFA house-price index will likely show muted
moves in January, when they are released at 1 p.m. in London, or 9
a.m. Eastern Time. U.S. new-home sales and consumer-confidence data
are on tap at 2 p.m. in London.
U.S. stock futures pointed to a higher open on Wall Street.
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