Recoveries bets by automakers and banks boost European stocks
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European markets gained on Monday, with automakers, banks, and oil shares leading the way, as dealers bet on a strong Eurozone economic recovery to offset concerns about a global recession.
As of 0708 GMT, the Pan-European STOXX 600 index was up 0.4 percent, regaining lost ground after hitting a three-week low last week. Asian markets, on the other hand, fell on news of a new regulatory crackdown on Chinese enterprises. [MKTS/GLOB]
Banks, automakers, oil and gas, and construction and materials all increased between 0.8 percent and 1.2 percent. The European Central Bank upgraded its growth and inflation forecasts for this year and beyond last week, as the Eurozone economy recovered faster than predicted.
Zooplus AG, a German online pet supplies business, rose 7.8 percent after Hellman & Friedman increased its buyout bid from 3 billion euros to 3.29 billion euros ($3.89 billion).
Associated British Foods (OTC: ASBFY) fell 2.2 percent as Primark’s quarterly sales fell short of expectations, while the business boosted its full-year profit forecast.