MW: European stocks climb as euro-zone trade surplus rises
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stock markets erased earlier losses and moved broadly higher on Monday after data showed the euro zone’s trade surplus grew more than expected in September.
The Stoxx Europe 600 index XX:SXXP +0.63% added 0.4% to 324.24, on track for a third straight day of gains.
Among notable movers in the pan-European benchmark, shares of Aberdeen Asset Management PLC UK:ADN +13.61% surged 14% after Lloyds Banking Group PLC UK:LLOY +1.25% LYG +0.40% said it is selling its asset-management business Scottish Widows Investment Partnership Group Ltd. to the U.K. investment manager. Shares of Lloyds rose 1.1%.
Shares of Sonova Holding AG CH:SOON +5.92% rallied 6.6% after the Swiss hearing-aid maker raised its fiscal full-year outlook, after sales rose 8.6% in the first half of the year.
Pointing in the other direction, shares of Petrofac Ltd. UK:PFC -15.71% sank 17% after the oil-services firm said it expects “flat to modest” profit growth in 2014. The move marked the biggest percentage drop since the company was listed in London in 2005.
The broader European markets moved higher in midmorning trade after Eurostat said the trade surplus for the euro zone rose to 13.1 billion euros ($17.67 billion) in September, compared with a €8.6 billion surplus in the same month last year. The region’s exports rose 3%, while imports were flat, indicating that demand for euro-zone goods are rising. A Reuters showed analysts expected a €10 billion surplus in September.
The data calendar was otherwise relatively light on Monday, but later in the week several releases are on tap. On Tuesday, the German ZEW survey is out, expected to show investors remain optimistic about the euro zone’s largest economy. On Wednesday, the minutes from the Bank of England’s last policy meeting are due, followed by purchasing managers’ indexes from the major economies in the euro zone on Thursday.
The positive European session on Monday also came as most Asian markets closed higher after Beijing outlined its strategy for economic reform, saying that the government would open up the financial sector and relax restrictions on investment.
Among country-specific indexes in Europe, the FTSE 100 index UK:UKX +0.53% increased 0.4% to 6,6720.49, while France’s CAC 40 index FR:PX1 +0.87% added 0.5% to 4,313.18. Germany’s DAX 30 index DX:DAX +0.85% gained 0.6% to 9,223.19.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
