By Carla Mozee, MarketWatch
Commerzbank rises on dividend news
European stocks jumped Friday, coming back from a sharp selloff
in the previous session, and held to higher ground after the
release of economic growth figures for the eurozone.
The Stoxx Europe 600 rose 2% to 309.69, with oil and gas and
financial shares leading all sectors higher.
Topping the index was Commerzbank AG (CBK.XE), whose shares
charged up 17%. That performance, the best since July 2009, came
after the lender swung to a fourth-quarter profit. Commerzbanks
said it plans to pay its first dividend since 2007,
(http://www.marketwatch.com/story/commerzbank-to-pay-dividend-after-swing-to-profit-2016-02-12)of
20 euro cents (23 U.S. cents) a share for 2015.
Read: Commerzbank eyes extending negative interest rates
(http://www.marketwatch.com/story/commerzbank-eyes-extending-negative-interest-rates-2016-02-12)
The rise in the Stoxx 600 was a bit of relief after Thursday's
tumble of 3.7%
(http://www.marketwatch.com/story/european-stocks-knocked-to-lowest-since-2013-as-fear-selling-returns-2016-02-11)
to 303.58, its lowest close since September 2013. That also marked
the largest percentage drop since August, according to FactSet
data.
"Traders are thinking enough is enough, and let's bag some
bargain[s]," said Naeem Aslam, chief market analyst at AvaTrade, in
a note.
"If the downward spiral for the global equity market is coming
to an end, it is way too early to say," he added. "The bounce which
we may experience may not last for long, as investors are
apprehensive about the banking sector, due to the low interest rate
environment and feeble growth."
In Frankfurt Friday, the DAX 30 gained 1% to 8,841.50. France's
CAC 40 picked up 1% at 3,936.63 and the U.K's FTSE 100 gained 1.5%
to 5,618.
Down for week: A weekly fall of 5% for Stoxx 600 looks likely,
and that would build on last week's drop of 4.8%. More than $1.8
billion was pulled from European equity funds during the week ended
Feb. 10 "as investors continue to focus on the health of the
region's banking system," said fund-tracker EPFR in an update.
So far this year, the Stoxx 600 has stumbled 15.3%. Last year,
the index rose 6.8%.
Bank shares: The Stoxx 600 Bank Index pushed up nearly 4%, after
the group on Thursday led the selloff in Europe.
Shares of Deutsche Bank AG (DBK.XE) (DBK.XE) on Friday leapt
8.7%, and UniCredit SpA (UCG.MI) picked up 7.4%. Italy's Banco
Popolare Societa Cooperativa (BP.MI) moved 9% higher, after its CEO
said it will close a merger deal
(http://www.marketwatch.com/story/banco-popolare-set-for-popolare-di-milano-deal-2016-02-12)with
Banca Popolare di Milano (PMI.MI) soon. Banca Popolare di Milano
shares were up 5%.
Bucking the trend, Italy's embattled Banca Monte dei Paschi di
Siena (BMPS.MI) lost 3.8%, while Portuguese lender Banco Comercial
Portugues SA (BPCGY) dropped 1.2%.
"We see bank weakness, especially in Europe, as being driven by
a weakening macro outlook, commodity price exposure and
idiosyncratic events at Deutsche Bank and in Italy," said Barclays
analysts in a note.
"Although we hesitate to call a bottom for subordinated European
bank paper in general, this effect is now overdone for
higher-quality banks, in our view," they added.
Data: Fourth-quarter growth in the eurozone economy met
expectations, rising 0.3% from the previous three months
(http://www.marketwatch.com/story/eurozone-gdp-rises-03-on-quarter-15-on-year-2016-02-12).
Gross domestic product expanded by 1.5% in 2015 as a whole. For
Germany alone, GDP rose 0.3%
(http://www.marketwatch.com/story/german-gdp-grows-03-meeting-views-2016-02-12)
in quarter, as exports fell.
Eurostat data released Friday showed eurozone industrial
production fell 1% in December. Analysts had expected a rise of
0.3%.
The euro had risen to an intraday high of $1.1325 after the GDP
report, but eventually pulled back to trade at $1.1273. Late
Thursday, the shared currency bought $1.1323.
You're invited to Investing Insights: A global markets survival
guide
If you'll be in London on Tuesday, Feb. 23, you're invited to
join us for an evening of cocktails and conversation on the topics
of shifting monetary policy, growth, currencies, and the outlook
for investing opportunities and risks in European and global
markets.
Our panelists for the evening will include MarketWatch Personal
Finance and Investing Columnist Robert Powell; and Mark Hulbert,
Editor of the Hulbert Financial Digest.
The event is free and open to the public, but reservations are
required. For more information or to RSVP for the event, please
email (MarketWatchevent@wsj.com).
(END) Dow Jones Newswires
February 12, 2016 07:50 ET (12:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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