European stocks climb on beige book
Sunday, 17 June 2007
LONDON, June 16 (Bloomberg): European stocks rebounded this week after the US Federal Reserve said the world's biggest economy is growing without causing inflation, consumer prices rose less than forecast and several companies became the subject of takeover talk.
J Sainsbury Plc jumped after a Qatar fund bought shares in the U.K. supermarket chain, while Wolseley Plc, Imperial Chemical Industries Plc and BHP Billiton Ltd. rallied on renewed takeover speculation. Total SA and Royal Dutch Shell Plc paced gains among oil producers as crude prices touched a nine-month high.
European equities gained as investors shrugged off concern that rising borrowing costs will damp economic expansion and profit growth. The Dow Jones Stoxx 600 Index climbed the most in almost three months, recovering from last week's slump after the European Central Bank raised its benchmark interest rate and yields on US 10-year Treasury notes touched the highest in five years.
``The focus is back on growth rather than inflation after the Fed statement, and the world economy is doing extremely well,'' said Han De Jong, who helps manage the equivalent of $250 billion as chief economist at ABN Amro Asset Management in Amsterdam.
J Sainsbury Plc jumped after a Qatar fund bought shares in the U.K. supermarket chain, while Wolseley Plc, Imperial Chemical Industries Plc and BHP Billiton Ltd. rallied on renewed takeover speculation. Total SA and Royal Dutch Shell Plc paced gains among oil producers as crude prices touched a nine-month high.
European equities gained as investors shrugged off concern that rising borrowing costs will damp economic expansion and profit growth. The Dow Jones Stoxx 600 Index climbed the most in almost three months, recovering from last week's slump after the European Central Bank raised its benchmark interest rate and yields on US 10-year Treasury notes touched the highest in five years.
``The focus is back on growth rather than inflation after the Fed statement, and the world economy is doing extremely well,'' said Han De Jong, who helps manage the equivalent of $250 billion as chief economist at ABN Amro Asset Management in Amsterdam.