ROME: European equities were little changed after a rally that has helped them recoup about half the losses from a summer rout, as investors assessed prospects for economic growth and the outlook for stimulus.
The Stoxx Europe 600 Index added 0.2 percent at 9:29 a.m. in London. It rose yesterday after euro-area and U.S. manufacturing data beat estimates. The equity benchmark has climbed 11 percent since a Sept. 29 low, including last month’s best gain since 2009, as European Central Bank President Mario Draghi’s said policy makers will consider additional easing in December. Draghi speaks in Frankfurt after European markets close today.
“It’s all about confidence,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit in Hellerup, Denmark. “People are still cautious, but now they’re slowly becoming less skeptical regarding the global economic recovery. If corporates also start to show strength in this kind of environment, that’s all you need to support a year-end rally. For now I still think we need more evidence.”
UBS Group AG slipped 4.4 percent after postponing a profitability target, while TDC A/S and Dufry AG gained 6.8 percent or more after reporting quarterly earnings that beat estimates.
Among other stocks moving on corporate news, Standard Chartered Plc dropped 6.3 percent after saying it will cut jobs and raise 3.3 billion pounds ($5.1 billion) in a rights offer. PostNL NV tumbled 20 percent after forecasting a drop in 2016 earnings, citing regulatory measures and higher restructuring costs.
Volkswagen AG lost 4.9 percent after U.S. regulators said their testing found some models including Porsche have equipment to alter emissions systems. Volkswagen denied the allegations. Porsche Automobil Holding SE lost 3.4 percent.
A gauge of travel and leisure shares posted the best performance among Stoxx 600 groups. Stagecoach Group Plc led gains, rising 5.9 percent after a favorable decision on a bus-franchising scheme in north-east England.
