(MENAFN– ecpulse)
European stocks turned higher early Wednesday, extending yesterday`s rebound from February lows, but gains were quite limited as traders cautiously anticipated Friday`s US employment report.
Soft gains were evident across the global stocks, starting with Wall street which, after a series of bumpy sessions, was boosted by some impressing corporate profits and less jitters coming from the emerging market currencies. Asian equities ended on a mixed note, as Japan and South Korea gained, but Chinese markets remained closed for Lunar New Year Holiday.
Taking a closer look at Europe, equities were shooting higher mostly with the benchmark Stoxx 600 rising 00% to at 00:00 a.m. EST. The top winners were UK`s RSA Insurance and Swiss Swatch rising 5.05% and 3.76%, respectively.
- UK`s FTSE 100 was up 0.27% at 6,466.56
- France`s CAC 40 was up 0.07% at 4,120.14
- Germany`s DAX 30 was up 0.09% at 9,119.65
Bargain hunters are back in the game following the monster sell-off that struck world stock in February. However, the rebound was clearer after we saw an encouraging services activity for January, with latest Markit surveys showing the 17-nation economy expanded at fastest pace since June 2011.
European composite of manufacturing and services confirmed a widening expansion in January, raising hopes recovery is gaining traction.
The manufacturing PMI rose to 52.9 from 52.1 in December, yet lower than the initial of 53.2. PMI services rose to 51.6 from 51.0, down from the flash reading of 51.9, Markit said. Germany`s PMI composite, which tracks growth in both manufacturing and services sectors, surged to 55.5 in January from 55.0 a month earlier.
In the US, the ADP report hasn`t been an exactly reliable gauge for the monthly employment report yet it will be closely watched.
Watch also for the ISM non-manufacturing employment index for an indication on Friday`s big report.
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