EUROPE MARKETS: European Stocks Gain As German Business Mood Rises To 2.5-year High
25 Oktober 2016 - 12:37PM
Dow Jones News
By Victor Reklaitis, MarketWatch
Analyst: 'Economic engine of the eurozone is picking up
steam'
European stocks gained ground Tuesday, as analysts said buying
was spurred by an encouraging reading on German business
sentiment.
The Stoxx Europe 600 was up 0.1% to 344.62 after Germany's Ifo
institute said the business mood in Europe's largest economy rose
to a 2.5-year high. The pan-European gauge had traded as high as
345.65 earlier Tuesday, according to FactSet data.
The institute's business climate index increased to 110.5 points
(http://www.marketwatch.com/story/german-business-mood-hits-25-year-high-in-october-2016-10-25)
in October from 109.5 in September, reaching its highest level
since April 2014.
"The German Ifo data has provided further evidence that the
economic engine of the eurozone is picking up steam," said Naeem
Aslam, chief market analyst at ThinkMarkets, in a note.
"Traders are falling more in love with equities. The news has
also provided a support for the euro."
On Monday, the Stoxx Europe 600 finished roughly flat
(http://www.marketwatch.com/story/european-stocks-advance-with-spanish-shares-energized-by-political-deal-2016-10-24).
Movers: Luxottica Group SpA's stock (LUX.MI) was up 4.4% after
the Italian eyewear giant said third-quarter sales grew 3.2%
(http://www.marketwatch.com/story/luxottica-quarterly-us-wholesale-sales-decline-2016-10-25).
On the downside, Swiss chip company AMS AG (AMS.EB) plunged 14%
in the wake of its third-quarter report
(http://ams.com/eng/Press-Center/Press-Releases/Ad-hoc/Monday-24-October-2016).
AMS said it sees "muted" growth for its business in the fourth
quarter due to "a negative development at a specific customer."
Meanwhile, mining stocks were among the notable advancers,
moving up as prices for gold and most other metals rose. Gold
futures gained 0.5% to $1,269.50 an ounce.
Anglo American PLC (AAL.LN) tacked on 3.3%, Antofagasta PLC
(ANTO.LN) rose 3.1%, Rio Tinto PLC (RIO) (RIO) (RIO) gained
2.6%.
Read:Why mining stocks are due for a 20% drop
(http://www.marketwatch.com/story/why-mining-stocks-are-due-for-a-20-drop-2016-10-21)
(http://www.marketwatch.com/story/why-mining-stocks-are-due-for-a-20-drop-2016-10-21)Shares
of wind turbine manufacturers Vestas Wind Systems AS (VWS.KO) and
Gamesa Corporacion Tecnologica SA (GAM.MC) added 0.5% and 0.9%,
respectively after the International Energy Agency significantly
lifted its forecast for five-year growth in renewable energy
(http://www.marketwatch.com/story/turning-point-in-green-energy-prompts-iea-to-drastically-raise-5-year-outlook-2016-10-25).
Indexes: Germany's DAX 30 was up 0.3% to 10,790.64, while the
U.K's FTSE 100
(http://www.marketwatch.com/story/ftse-100-gains-as-miners-and-st-jamess-place-jump-2016-10-25)
tacked on 0.4% to 7,011.14
France's CAC 40 edged up less than 0.1% to 4,554.38.
The euro was changing hands at $1.0885, up from $1.0875 late
Monday in New York.
(END) Dow Jones Newswires
October 25, 2016 06:22 ET (10:22 GMT)
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