European stocks have jumped up rebounding from the biggest 3-day selloff that it had experienced, since last July. The German Industrial production published better results than expected and on the other hand, many investors waited the start of the US earnings season. The benchmark gauge of European stocks, the Stoxx Europe 600 Index jumped up by 0.2% and is currently at 287.64. On last week, the gauge experienced a decline of 2.3% on speculations that the recovery process of US economy has slowed down. However, as the central banks have maintained the stimulus measures, the gauge has still been able to sustain the advance of 2.9%, experienced in 2013.
According to the Fund Manager of Old Mutual Asset Managers, Kevin Lilley, things still look bullish for the European stocks. Economic data is kind of weak at this point of time, so, Lilley feels that his view may get moderated a bit. Still, he believes that it’s right to have a cyclically biased portfolio.
In Western Europe, 13 of the 18 markets saw its indexes climbing up. The benchmark gauge of UK, FTSE 100 Index jumped up by 0.4%, the CAC40 of France went ahead by 0.1%. Similar was the gain for the benchmark gauge of Germany, the DAX. The volume of shares changing hands in the Stoxx 600 on today was 27% lower in comparison to the average of the last 30 days.
Lundin Petroleum AB increased the most in last 6 weeks after it discovered oil in the North Sea. Among the health care companies, Roche Holding AG and Novartis AG led the gains, as both of these increased by more than 1.5%. On the other hand, the largest publicly traded lender of Portugal, Banco Espirito Santo SA went down by 3.4% as a court blocked part of the deficit reduction plan of the Portuguese Government.
Cairn Energy Plc. increased by 3.3% and is currently at 282 pence per share, after the hedge fund founded by David Einhorn, raised its holdings in the oil exporter to 3% of voting rights. A statement on this matter was released on 5th April.
Health care shares experienced the biggest gain in the Stoxx 600, as these advanced by 1%. The biggest drug maker in Europe jumped up by 1.8% and each of its shares is currently priced at 66.65 Swiss Francs.