For the 4th straight day, European stocks have advanced marking the biggest rally in the last 5 weeks. The surge was mainly attributed by the report signaling expansion of Chinese manufacturing data. Asian shares also gained because of the news, as well as the US index futures. Incidentally, the US stock market is closed today because of the Thanksgiving holiday.
The 1st half profits of the second largest brewer in the world, SABMiller Plc. exceeded its estimates and that helped the company to achieve its biggest jump in the last 13 months. SABMiller is currently priced at 2809 pence after advancing by 6.7%. The earnings of the company have risen by 17% and it is at $3.17 billion currently. This is more than the estimated earnings of $3.1 billion. The CEO of the company stated that SABMiller will grow further in the next year.
The publisher of United Kingdom’s famous Daily Mail Newspaper, Daily Mail & General Trust Plc. announced a share buyback program and that helped them to avail the biggest gain in the last 3 years. It has climbed up by 10% and is at 522 pence per share now. The company is going to buy back shares and they have a budget of $160 million currently. There is another positive news for the company. The net debt of Daily Mail dropped to 613 million pounds (Statistics till 30th September, 2012) from 719 million pounds in 30th September, 2011. Liberum Capital Ltd. stated that Daily Mail is more of a business to business company now, rather than a regular newspaper group. It also suggested a modification in Daily Mail’s share prices accordingly.
Swedbank on the other hand, dropped 2.3% and the per share price is at 118.30 kronor now. Swedbank is the third largest bank in Sweden.
The Stoxx Europe 600 Index has risen by 0.4% and is at 271.27 currently. Since 4th June, 2012, the benchmark gauge has seen a rally of 12% mainly because of the decision of Federal Reserve and European Central Bank to expand their asset-purchase plans. The volume of shares changing hands in the Stoxx 600 companies was 28% less than the 30-day average, according to reports. The gauge of European beverage and food companies seem to have contributed the most towards the gains of Stoxx 600.
Standard & Poor’s 500 Index surged by 0.3% as well. The MSCI Asia Pacific Index also had a good fate and it increased by 0.3%.
The factory output in the Euro area contracted less than the initial expectations set by the economists. During November, the measure of manufacturing in this region has increased to 46.2. It was 45.4 in the previous month. Incidentally, the expected measure of manufacturing was 45.6 for November. If the separate manufacturing PMIs of Spain and Germany are considered, these also beat the initial estimates.
The Government bonds of Spain for 10-year terms have increased for straight 3 days, thanks to the borrowing costs of the country seeing a decline. Spanish Government decided to sell 3.88 billion Euros worth of security, thereby exceeding the maximum target.
Nokia Oyj increased its share prices by 4% and is at 2.59 Euros now. This marks the highest price for the company since 28th August. C&C Group also saw a rise of 1.9% and is at 3.99 Euros currently. After Barclays Plc. decided to raise the EayJet Plc. to equal weight from the status of underweight, the share prices of the 2nd largest discount airline in Europe also saw an increase of 1.2% in the share prices. The company has also shown improvement in non-fuel cost fundamentals and revenues.
Air France-KLM saw advancement of 2.5% and is at 6.77 Euros now. Deutsche Lufthansa AG rose by 3.9%, on the other hand. Incidentally, the price estimates for Lufthansa was raised by 12% by Barclays as they see little restructuring risk in it. Though Royal KPN NV increased by 6.8% yesterday, it suffered a loss of 1.9% today.