EUROPE MARKETS: European Stocks Bounce Back, With GDP In View
12 February 2016 - 8:20PM
Dow Jones News
By Carla Mozee, MarketWatch
Commerzbank rises on dividend news
European stocks rose Friday, coming back from a sharp selloff in
the previous session, ahead of the release of economic growth
figures for the eurozone.
The Stoxx Europe 600 gained 1.3% to 307.57, with oil and gas and
financial shares leading all sectors higher.
Topping the index was Commerzbank AG (CBK.XE), with shares
charging up 13% after the lender said it plans to pay a dividend of
20 euro cents (23 U.S. cents) a share, the first dividend since
2007. The move comes as the bank swung to a fourth-quarter
profit.
The Stoxx 600's rise 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 was also the
largest percentage drop since August, FactSet data showed.
"Traders are thinking enough is enough, and let's bag some
bargain[s] and this is despite the fact that we had a heavy selloff
over in Asia," said Naeem Aslam, chief market analyst at AvaTrade,
in a note.
In Asia overnight, the Nikkei Stock Average slid 4.8% as the yen
rose against the dollar.
"However, if the downward spiral for the global equity market is
coming to an end, it is way too early to say," Aslam 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."
For the week, the Stoxx 600 is on track for a 5.4% decline. That
would build on last week's fall of 4.8%. So far this year, the
benchmark has lost nearly 16%.
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
Data: Coming up at 10 a.m. London time, or 5 a.m. Eastern Time,
is the first release of fourth-quarter economic-growth figures for
the eurozone. Analysts polled by FactSet expect a rise of 0.3% in
gross domestic product, from the third quarter.
"The market ... expects that growth in the eurozone as a whole
remained steady in Q4," coming after data from purchasing managers'
indexes, said Marshall Gittler, head of investment research at
FXPrimus, in a note.
"However, the link between growth and inflation or growth and
market interest rates seem to have been broken, so even a decent
number probably won't change any views on ECB policy or the euro,"
he added.
The market has already received Germany's fourth-quarter report,
which showed Europe's largest economy grew at a rate of 0.3%
(http://www.marketwatch.com/story/german-gdp-grows-03-meeting-views-2016-02-12)
as exports fell.
The euro was down 0.3% at $1.1276 ahead of the eurozone growth
report.
Also at 10 a.m. London time, the December reading of eurozone
industrial production is scheduled for release. Analysts are
looking for a rise of 0.3%.
(END) Dow Jones Newswires
February 12, 2016 04:05 ET (09:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024