European shares buoyed by German data, M&A speculation

lunes 4 de mayo de 2015 10:22 GYT
 

* Euro zone indexes bounce after German PMI beats forecast

* Syngenta gains on M&A report

* UK market closed

By Atul Prakash and Francesco Canepa

LONDON, May 4 (Reuters) - European shares advanced in thin trade on Monday, boosted by better-than-expected German manufacturing data and merger and acquisition speculation about chemicals companies.

Trading volume was lighter than usual on most indexes because of a public holiday in Britain, home to Europe's largest stock market and many large trading firms.

Germany's Dax, up 1.5 percent at 11,630 points, outperformed its main peers after an index of manufacturing activity was revised up in its final April reading, suggesting activity remained healthy despite a slowdown from the previous month.

"The German economic growth has been solid and gives support to the stock market," said Christian Stocker, a strategist at UniCredit. "I think the majority of analysts will be revising their 2015-16 earnings forecasts higher during the next six months."

Christian Henke, a strategist with IG, said the German data could set off a rebound in the DAX after its recent 7 percent fall, provided that the index closes above 11,400 points, roughly corresponding to the 23.6 percent retracement of its October-April rally.   Continuación...