European stocks advance
Tuesday, 12 June 2007
LONDON, June 11 (Bloomberg): European stocks rose for the first time in six days as renewed takeover speculation lifted mining and steel companies.
BHP Billiton Ltd. led mining companies higher after UBS AG said mergers in the industry ``will continue to accelerate.'' ThyssenKrupp AG fueled a rally by steel producers after Interfax reported the world's biggest stainless steelmaker is interested in acquisitions. Axa SA, Rodamco Europe NV and Deutsche Bank AG led gains by financial companies, among the hardest hit last week.
``As long-term investors we don't believe this is the end of the bull market,'' said Philippe Gijsels, senior equity strategist at Fortis Global Markets in Brussels, which manages $62 billion. ``We are at the middle of the economic cycle and at the end of the year we'll be higher than today. If we correct a bit further, this creates a buying opportunity.''
Mergers and acquisitions have stoked a rally in European stocks that sent the Dow Jones Stoxx 600 Index on June 1 to the highest since September 2000.
The Stoxx 600 added 0.7 per cent to 387.78 as of 12:59 p.m. in London, after falling 3.8 per cent last week. The Stoxx 50 rose 0.5 per cent today, while the Euro Stoxx 50, a measure for the 13 nations sharing the euro, increased 0.6 per cent.
Corporate Express NV, the world's biggest office-supplies distributor, jumped the most in four years after hedge fund Centaurus Capital Ltd. built a stake in the company. Barclays Plc rose on a report Atticus Capital LLC wants the U.K. bank to abandon the purchase of ABN Amro Holding NV.
National benchmarks advanced in all 18 western European markets. The U.K.'s FTSE 100 and France's CAC 40 both added 0.7 per cent and Germany's DAX rose 1 per cent.
Stocks fell last week the most in three months after the European Central Bank raised its benchmark interest rate and yields on US 10-year Treasury notes touched the highest in five years. US stocks rebounded on June 8 as yields retreated from highs and oil prices declined. Asian stocks gained today for the first time in three days after a report showed Japan raised its first-quarter economic growth estimate.
``The positive fundamentals for stocks haven't changed,'' said Robert Halver, a Frankfurt-based strategist at Vontobel Investment Banking, a unit of Vontobel Holding AG. ``There's no reason to make people feel afraid.'' Zurich-based Vontobel oversees the equivalent of $58 billion.
Axa, Europe's second-biggest insurer, climbed 0.8 per cent to 31.25 euros. Rodamco, a Dutch shopping-mall owner, climbed 1.1 per cent to 101.37 euros. Deutsche Bank, Germany's largest bank, added 1.8 per cent, to 108.38 euros.
BHP Billiton Ltd. led mining companies higher after UBS AG said mergers in the industry ``will continue to accelerate.'' ThyssenKrupp AG fueled a rally by steel producers after Interfax reported the world's biggest stainless steelmaker is interested in acquisitions. Axa SA, Rodamco Europe NV and Deutsche Bank AG led gains by financial companies, among the hardest hit last week.
``As long-term investors we don't believe this is the end of the bull market,'' said Philippe Gijsels, senior equity strategist at Fortis Global Markets in Brussels, which manages $62 billion. ``We are at the middle of the economic cycle and at the end of the year we'll be higher than today. If we correct a bit further, this creates a buying opportunity.''
Mergers and acquisitions have stoked a rally in European stocks that sent the Dow Jones Stoxx 600 Index on June 1 to the highest since September 2000.
The Stoxx 600 added 0.7 per cent to 387.78 as of 12:59 p.m. in London, after falling 3.8 per cent last week. The Stoxx 50 rose 0.5 per cent today, while the Euro Stoxx 50, a measure for the 13 nations sharing the euro, increased 0.6 per cent.
Corporate Express NV, the world's biggest office-supplies distributor, jumped the most in four years after hedge fund Centaurus Capital Ltd. built a stake in the company. Barclays Plc rose on a report Atticus Capital LLC wants the U.K. bank to abandon the purchase of ABN Amro Holding NV.
National benchmarks advanced in all 18 western European markets. The U.K.'s FTSE 100 and France's CAC 40 both added 0.7 per cent and Germany's DAX rose 1 per cent.
Stocks fell last week the most in three months after the European Central Bank raised its benchmark interest rate and yields on US 10-year Treasury notes touched the highest in five years. US stocks rebounded on June 8 as yields retreated from highs and oil prices declined. Asian stocks gained today for the first time in three days after a report showed Japan raised its first-quarter economic growth estimate.
``The positive fundamentals for stocks haven't changed,'' said Robert Halver, a Frankfurt-based strategist at Vontobel Investment Banking, a unit of Vontobel Holding AG. ``There's no reason to make people feel afraid.'' Zurich-based Vontobel oversees the equivalent of $58 billion.
Axa, Europe's second-biggest insurer, climbed 0.8 per cent to 31.25 euros. Rodamco, a Dutch shopping-mall owner, climbed 1.1 per cent to 101.37 euros. Deutsche Bank, Germany's largest bank, added 1.8 per cent, to 108.38 euros.