EUROPE MARKETS: European Stocks Finish Higher As German Businesses Take 'euphoric' Tone
|07/25/2017 | 12:08pm|
By Carla Mozee and Victor Reklaitis, MarketWatch
TechnipFMC slides on restatement plan
European stocks closed higher Tuesday, with bank stocks gaining ground as investors assessed upbeat developments from Germany and Greece.
The Stoxx Europe 600 tacked on 0.4% to finish at 380.77, rebounding after the benchmark on Monday closed lower by 0.2%.
In Frankfurt, the DAX 30 was higher by 0.5% at 12,264.31, holding to gains after the closely watched Ifo Institute described German companies as "euphoric" . The widely watched Ifo index of business sentiment in Europe's largest economy surged to a record high of 116.0 in July.
"The current acceleration in the German economy is not only the result of strong private and public consumption, but also of an unexpected industrial revival and stronger investment," said Carsten Brzeski, chief economist at ING, in a note.
"The recent strengthening of the euro should not be a risk, as the German export sector has frequently proven its ability in the past to stomach stronger exchange rates," he added.
The euro climbed to an intraday high of $1.1712, up from $1.1645 late Monday in New York. It recently traded at $1.1654.
Stock movers: Tuesday's top gainers included Banco de Sabadell SA (>> Banco de Sabadell) , as shares of the Spanish lender rose 3.7%.Sabadell is part of a joint venture with Zurich Insurance Group (>> Zurich Insurance Group) that signed a reinsurance agreement with Swiss Re (SSREY) for its individual life portfolio for 683.7 million euros ($797.1 million).
Sabadell's share-price rise helped lift the Stoxx Europe 600 Bank Index up 1.6%.
Randstand Holding NV (>> Randstad) leapt 4.9% as the Dutch recruitment company's second-quarter revenue climbed nearly 15% .
TechnipFMC PLC (>> TechnipFMC) fell 1.8% after the oil-field services company said it would restate some prior results because of material errors.
Provident Financial PLC (>> Provident Financial) dropped 5.8% after the credit provider reported a 46% drop in first-half pretax profit .
Off the Stoxx Europe 600, shares of luxury shoe maker Jimmy Choo (>> Jimmy Choo PLC) jumped 17% after it signed a $1.2 billion deal to be acquired by U.S. fashion house Michael Kors Holdings Ltd. (>> Michael Kors Holdings Ltd) .
Greek bond sale: Meanwhile, Greece is back in the international bond markets following a three-year hiatus, with a five-year bond sale starting Tuesday. Greece's Athex Composite was down 0.7% at 843.05 on Tuesday, but has jumped 31% this year.
Economic docket: In the U.S., the Federal Reserve's two-day policy meeting is due to kick off Tuesday, with the resulting policy announcement due Wednesday. European investors closely watch U.S. central bank moves, as they help drive sentiment in Europe.
National indexes: The U.K.'s FTSE 100 drove up 0.8% to end at 7,434.82, and France's CAC 40 index rose 0.7% to finish at 5,161.08.