European stocks rise as rate concern eases
Friday, 15 June 2007
LONDON, June 14 (Bloomberg): European stocks advanced for a second day, led by exporters and mining companies, after concern diminished that interest rates will keep rising and metal prices rebounded in London.
Michelin & Cie. and Siemens AG led an advance by companies that make at least 20 per cent of their sales in the US Rio Tinto Group, the world's third-biggest mining company, climbed to a record. Hays Plc rose after Britain's biggest recruitment company said fee increases in the U.K. and Ireland accelerated.
Bank stocks rallied as European bond yields retreated from near a five-year high and yields on US Treasuries were little changed. Europe's Dow Jones Stoxx 600 Index has dropped 2.1 per cent after closing at a 6 1/2-year high on June 1 as higher borrowing costs damped prospects for economic and profit growth.
``Growth concerns have been smoothed out,'' said Thomas Romig, a fund manager at Cominvest Asset Management in Frankfurt, which oversees about $75 billion in assets.
Sanofi-Aventis SA tumbled the most in more than four years after a US panel rejected the French drugmaker's Zimulti weight-loss pill. Cadbury Schweppes Plc gained on expectations the world's largest confectioner may get offers for its US drinks unit.
Michelin & Cie. and Siemens AG led an advance by companies that make at least 20 per cent of their sales in the US Rio Tinto Group, the world's third-biggest mining company, climbed to a record. Hays Plc rose after Britain's biggest recruitment company said fee increases in the U.K. and Ireland accelerated.
Bank stocks rallied as European bond yields retreated from near a five-year high and yields on US Treasuries were little changed. Europe's Dow Jones Stoxx 600 Index has dropped 2.1 per cent after closing at a 6 1/2-year high on June 1 as higher borrowing costs damped prospects for economic and profit growth.
``Growth concerns have been smoothed out,'' said Thomas Romig, a fund manager at Cominvest Asset Management in Frankfurt, which oversees about $75 billion in assets.
Sanofi-Aventis SA tumbled the most in more than four years after a US panel rejected the French drugmaker's Zimulti weight-loss pill. Cadbury Schweppes Plc gained on expectations the world's largest confectioner may get offers for its US drinks unit.