(MENAFN– ecpulse)
European shares advanced on Tuesday midday trading amid speculations the recent deterioration in China’s economic data would propel policymakers to introduce stimulus.
A report released on Monday showed that China’s flash PMI manufacturing dipped to an eight-month low of 48.1 in March from 48.5 the previous month.
The slowdown in China’s recent economic data has raised speculations there will be a soon action from the central bank to the stimulate the world’s second-biggest economy.
In Europe, the business climate index dropped to 110.7 in March, from the highest since July 2011 of 111.3 recorded in February, while U.K. CPI resumed its drop below BOE target to hit its lowest since September 2009 of 1.7 percent in February.
Attention will shift later in the day on important U.S. housing and confidence data that will give an update about the health of the economy after last week’s Fed statement.
Fed officials said they predict a hike in borrowing cost to at least 1 percent at the end of 2015, higher than previously expected. Fed Chairman Janet Yellen said interest rates may rise in six months after the end of the bond purchases withdrawal.
As of 07:33 EST, STOXX EUROPE 600 soared 1.11% to record 327.98 points. Basic Materials led the advance with a rise of 1.75%, followed by Consumer Goods which recorded 1.28% rise.
The highest shares were for Kingfisher PLC, as it advanced 7.01% to 435.00 GBP, while the biggest drop was recorded by Leoni AG as its shares plummeted 4.19% to 48.95 EUR.
Looking at other the major European indices, the French CAC index edged up 1.42% to 4337.07 levels and Britain`s FTSE 100 index recorded 1.21% advance to 6599.00 points. Germany`s DAX index rose 1.57% to 9332.16 points.
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