By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks rose Tuesday, with major
indexes starting the second quarter with gains as data showed the
euro-zone's manufacturing sector remains on a path to recovery.
The Stoxx Europe 600 finished up 0.6% at 336.35, adding to an
advance on Tuesday that left the benchmark up 1.8% for the first
quarter. Tuesday's best price performer was Metso Oyj , surging 20%
after the Finnish maker of oil and mining equipment said it's
considering a merger proposal from Scottish engineering firm Weir
Group .
The markets retained gains after trading began in the U.S., with
stocks there rallying after U.S. manufacturers said business picked
up pace slightly in March, and that they expect an improvement in
demand during the spring season. The S&P 500 Index (SPX) hit
its highest intraday level since March 21.
European stocks opened higher after Asian markets settled with
gains. HSBC's monthly Chinese manufacturing reading fell for a
third straight month in March, conflicting with China's official
PMI, which signaled an expansion in the factory sector. But some
analysts said much of the data reflect economic restructuring by
China as it seeks more-sustainable growth.
In its look at the euro zone, market-research firm Markit
reported a final March reading of 53.0 for its manufacturing
Purchasing Managers' Index, unchanged from a previous estimate.
French manufacturing returned to expansion with a level of 52.1,
compared with 49.7 in February -- the strongest reading since June
2011.
France's CAC 40 settled up by 0.8% at 4,426.72, the index's s
highest closing level since September 2008, according to FactSet
data. Leading price performers on the index were shares of Alstom
SA , up by 8.1% after the engineering conglomerate said it sold
part of its steam-power business to investment fund Triton for an
enterprise value of roughly 730 million euros ($1 billion).
"While the [euro-zone] survey paints a picture of a
manufacturing recovery that is broad-based, with output rising in
all countries surveyed for the second month running, the slight
easing in the rate of new-order inflows raises the risk of
production growth weakening further in April," said Chris
Williamson, chief economist at Markit, in a statement.
Separately, the unemployment rate in the euro zone was 11.9% in
February, said Eurostat, a result that was slightly better than
analyst estimates of a 12% reading.
The U.K.'s FTSE 100 scaled higher by 0.8% to end at 6,652.61,
with Aberdeen Asset Management PLC shares rising 6.7% as the
company said it's found more ways to cut costs. Meanwhile, BHP
Billiton PLC (BHP) picked up 2.1% as the mining heavyweight
reportedly considers the sale of non-core assets.
Germany's DAX 30 index rose 0.5% to 9,603.71.
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