European Report: Shares climb to highest level since January
EUROPEAN shares climbed to a three-week high in thin volumes yesterday, extending a strong two-week rally fuelled by record inflows from a greater number of investors betting on the region’s economic recovery.
Data showing brisk lending in China, the world’s biggest metals consumer, boosted miners, with BHP Billiton and Glencore Xstrata rising 1.2 per cent and 1.8 per cent respectively. The European mining index, was among the top sectoral gainers, up 1.1 per cent.
The FTSEurofirst 300 of top European shares ended 0.4 per cent higher at 1,337.06 points, the highest close since late January. However, volumes on the index, which has gained in eight of the past nine sessions, were just 69 per cent of its 90-day daily average due to a holiday in the United States.
Data from EPFR Global showed European equity funds have enjoyed net inflows of $17bn since the beginning of 2014, marking a record start to the year and in sharp contrast to massive outflows from emerging market funds.
Italy’s FTSE MIB was up 0.1 per cent after outperforming the wider market on Friday with a 1.6 per cent rally as investors welcomed the prospect that centre-left leader Matteo Renzi will become Prime Minister. The MIB is up nearly eight per cent so far this year, trading at a two and a half year high and strongly outperforming a 1.6 per cent rise in the FTSEurofirst 300 in 2014.
Europe has enjoyed relatively good corporate results in the current earnings season, with 58 per cent of companies reporting in-line or better-than-expected profits.