European shares rise on easy monetary backdrop, France outperforms

lunes 5 de octubre de 2015 12:43 GYT
 

(Adds closing prices)
    * Glencore, Arcelor lift miners; VW up after hitting 5-yr
low
    * France outperforms as economic data beat expectations
    * K+S wipes out one-quarter of value as Potash withdraws bid
    * Lisbon shares higher after Portuguese election

    By Danilo Masoni
    MILAN, Oct 5 (Reuters) - European shares rose sharply on
Monday as weak data in Europe and elsewhere reinforced
expectations the broad monetary policy backdrop will remain
equity-friendly, with Glencore and ArcelorMittal lifting the
mining sector.
    The pan-European FTSEurofirst 300 index ended up 3
percent and the euro zone's blue-chip Euro STOXX 50 
climbed 3.3 percent. Both had fallen on Friday before Wall
Street rebounded to end in the black.
    Euro zone business activity grew at its weakest pace in four
months during September, surveys showed on Monday.
 
    "Data today is moderately negative for equities .... but
their impact is practically neutral because of growing
expectations that easing monetary policies in various countries
will continue or be expanded," said Marco Vailati, head of
research at Italy's Cassa Lombarda. He added retail sales were
positive as they confirmed Europe's economy was growing.
     U.S. stocks rose on Monday, with the S&P 500 up for the
fifth day, after last week's disappointing jobs report hardened
views that the Federal Reserve won't raise interest rates this
year. 
    France's CAC outpaced the rest of Europe with a gain
of 3.5 percent following a report showing services activity
accelerated in September more than previously thought, a sign
that the euro zone's second-biggest economy finished the third
quarter on a firm footing.  
    "The economic data in France was today's surprise," said
Andrea Cuturi, chief investment officer at asset manager
Anthilia Capital. "Data elsewhere in Europe was not particularly
exciting. Signs of an economic acceleration in the euro zone are
there, but full of traps, from China to emerging markets and
local politics." 
    Mining and trading giant Glencore extended its
rebound from a sell-off a week ago, rising 21.1 percent on
Monday after a surge in its Hong Kong-listed shares.  
    Some traders said Glencore was buoyed by talk it might sell
some of its agricultural assets to cut its debt.  
    "Sentiment is improving towards Glencore on the signs that
it may be able to sell some of its assets," said Thames Capital
Markets trader Nav Banwait.
    Gains by steelmaker ArcelorMittal  also
helped mining stocks. It rose 8.7 percent after Citigroup raised
its rating on the stock to "buy" from "sell".
    Volkswagen, the car maker caught in a scandal
over rigged emissions tests, rose 1.3 percent. The stock earlier
fell as much as 6.5 percent to touch a five-year low, while its
credit default spreads jumped. 
    German potash producer K+S slumped 24.7 percent
after Potash Corp withdrew a bid. 
    Lisbon's benchmark PSI-20 index rose 3.5 percent
after Portugal's centre-right government won Sunday's election,
albeit without securing an outright majority. 
    European stocks remain below their 2015 peaks, reached
around April, having been pulled down in the third quarter by
concerns that China's economy was slowing.
    According to data from Sentix on Monday, sentiment in the
euro zone deteriorated further in October as investors, rattled
by a slowdown in emerging markets, pared back their expectations
for the economy.    
    
    Today's European research round-up 

 (Additional reporting by Sudip Kar-Gupta in London; Editing by
Mark Trevelyan)