European stocks join global rally on Shanghai gains| MENAFN.COM

Saturday, 10 December 2022 02:15 GMT

European stocks join global rally on Shanghai gains


(MENAFN- AFP) European stocks surged higher Tuesday, buoyed by upwardly revised eurozone economic growth data, joining a rally of US and most Asian markets.

The 19-nation eurozone grew by 0.4 percent in the second quarter, official data showed, revising upward a first estimate of 0.3 percent that triggered worries the Greek financial crisis had destabilised growth in Europe.

"Eurozone growth in the first and second quarter was better than initially thought," said analyst Craig Erlam at trading firm Oanda.

"Expectations were for the numbers to remain unchanged so this is likely to be helping to lift sentiment in Europe."

The more upbeat European data come as concerns grow about the slowdown in powerhouse China, but on Tuesday Chinese stocks rebounded, closing up 2.92 percent.

"Concerns about a slowdown are still there, but now the market thinks the Chinese government will provide more support," John Plassard, senior equity sales trader at Mirabaud Securities in Geneva, told Bloomberg News.

London's benchmark FTSE 100 index gained 1.18 percent to close at 6,146.10 points, while Frankfurt's DAX 30 climbed 1.61 percent to 10,271.36 and the Paris CAC 40 rose 1.07 percent to 4.598.26.

- China boost -

US equities also jumped on Tuesday following global relief at the strong gains in the volatile Chinese stock market.

Around mid-day in New York, the Dow Jones Industrial Average gained 1.64 percent, the broad-based S&P 500 climbed 1.46 percent and the tech-rich Nasdaq Composite Index advanced 1.76 percent.

The bounce in Shanghai deals that boosted global markets showed investors took mixed Chinese trade data in stride.

In Beijing, the customs bureau said exports fell 5.5 percent year-on-year while imports plunged 13.8 percent, stoking worries about the nation's economic slowdown.

The export data however was better than forecast and the import figure was affected by plunging commodity prices.

"Equities (are) on the front foot again... thanks to mixed China data being taken positively," said analyst Mike van Dulken at traders Accendo Markets.

"While exports were weak for a second consecutive month, they were not as weak as expected -- which plays in favour of global growth recovery hopes."

In other Asian trading, Hong Kong recovered from a big morning loss to end up 3.28 percent, Sydney added 1.69 percent, while Singapore, Taipei and Wellington also enjoyed gains.

However, Japan's Nikkei closed 2.43 percent lower, losing all gains made so far this year.

- French TV shares zapped -

In European company news on Tuesday, British insurer and takeover target Royal & Sun Alliance agreed to sell its Latin American operations to Colombian investment group Inversiones Suramericana.

RSA said in a statement it would sell its business in Latin America to Suramericana for £403 million (553 million euros, $618 million) in cash.

The London-listed insurance firm had last month received a £5.6-billion takeover approach from Swiss rival Zurich Insurance.

RSA's share price rose as much 1.09 percent before settling back to close up 0.20 percent at 504.50 pence.

In Paris, shares in private French television channel TF1 were zapped by poor viewing figures and a relaxation of restrictions on advertising on its state-held competitors.

TF1 shares slumped 7.4 percent to 12.96 euros after French Finance Minister Michel Sapin added his voice to mounting calls to study changing restrictions on prime-time advertising on public television channels.

In foreign exchange trading, the euro edged up to $1.1177 in London from $1.1170 late in New York on Monday.

On the London Bullion Market, gold advanced to $1,124 per ounce from $1,122.67.

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