Stocks of Asia, Europe rise, US futures advance
Wednesday, 1 August 2007
SINGAPORE, July 31 (Bloomberg): European stocks rebounded from a five-day plunge and shares in Asia advanced for a second day on waning concern losses from US subprime mortgages will damp global economic growth.
Aviva Plc, HSBC Holdings Plc and UBS AG led gains by financial stocks in Europe. GlaxoSmithKline Plc, the region's second-largest drugmaker, jumped the most in two years after a panel of medical specialists said its Avandia drug should remain on the US market. Olympus Corp. and Hang Seng Bank Ltd. paced an advance in Asia after the companies reported higher earnings.
The Morgan Stanley Capital International World Index climbed 0.7 per cent to 1575.87 as of 12:30 p.m. in London, gaining for a second day. The measure tumbled 5.3 per cent last week on concern that rising corporate bond risk will limit takeovers and defaults among US subprime borrowers will spill over into the economy.
``The markets are calming down after a rout driven by sentiment,'' said Werner Wittenhagen, who helps oversee the equivalent of $21 billion at LBBW Asset Management in Stuttgart, Germany. ``The subprime crisis should be largely factored into share prices now.''
Aviva Plc, HSBC Holdings Plc and UBS AG led gains by financial stocks in Europe. GlaxoSmithKline Plc, the region's second-largest drugmaker, jumped the most in two years after a panel of medical specialists said its Avandia drug should remain on the US market. Olympus Corp. and Hang Seng Bank Ltd. paced an advance in Asia after the companies reported higher earnings.
The Morgan Stanley Capital International World Index climbed 0.7 per cent to 1575.87 as of 12:30 p.m. in London, gaining for a second day. The measure tumbled 5.3 per cent last week on concern that rising corporate bond risk will limit takeovers and defaults among US subprime borrowers will spill over into the economy.
``The markets are calming down after a rout driven by sentiment,'' said Werner Wittenhagen, who helps oversee the equivalent of $21 billion at LBBW Asset Management in Stuttgart, Germany. ``The subprime crisis should be largely factored into share prices now.''