By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stock markets were on track for a fourth day of gains Thursday, as upbeat Chinese factory data lifted the global trading mood, and a cease-fire in the Middle East brought relief.
The Stoxx Europe 600 index XX:SXXP +0.52% rose 0.4% to 271.10, adding to a 0.2% gain on Wednesday.
U.S. markets were closed for the Thanksgiving holiday, which could keep trading volumes in Europe thinner.
Shares of SABMiller PLC UK:SAB +5.98% jumped 6.4%, after the brewer said net profit rose 15% in the six months to Sept. 30, while revenue surged 11%. See: SABMiller profit up, but warns on slowing growth.
Shares of Veolia Environnement SA FR:VIE +3.68% VE +1.29% rose 3.7%. The waste and water utility firm said it agreed to sell several small- and medium-size assets to reduce its net financial debt by 350 million euros ($451 million). See: Veolia agrees to sell several assets to cut debt.
Elsewhere, resources firms put in solid performances on the back of encouraging data from China. HSBC’s preliminary manufacturing Purchasing Managers’ Index rose to 50.4, marking the first time in 13 months the index topped the 50-point threshold that separates expansion from deterioration. See: China manufacturing finally expanding, data show
Asian bourses also closed in positive territory. See: Asia stocks mostly higher on upbeat China data.
“The continued improvement in the manufacturing PMI is consistent with our view that the Chinese economy has bottomed out and has started to recover moderately. Policy wise, the implication is that we are unlikely to see further substantial monetary and fiscal easing,” analysts at Danske Bank said in a note.
PMI data were also released in Europe, although with less optimistic readings. The preliminary Markit euro-zone composite purchasing managers’ index came in at 45.8 from 45.7 in October, but still indicated that activity continued to contract at a fast pace in November. See: Euro-zone Nov. PMI points to further activity fall
Investors also tracked developments in the Middle East, after a cease-fire between Israel and Hamas came into effect late Wednesday night. Tensions in the region had over the past week escalated with airstrikes and rocket attacks claiming lives on both sides, while a bomb on a Tel Aviv bus reportedly left three people needing surgery on Wednesday.
Movers
In the U.K., shares of heavyweight mining firm BHP Billiton PLC UK:BLT +0.91% BHP -0.69% AU:BHP +0.99% picked up 0.5%, Anglo American PLC shares UK:AAL +2.41% rose 1.4% and Rio Tinto PLC UK:RIO +0.82% RIO +0.19% AU:RIO +0.23% gained 0.9%.
Oil group BP PLC UK:BP +0.10% BP +0.92% eked out a 0.5% gain, while shares of BG Group PLC UK:BG +1.41% added 1.2%.
The FTSE 100 index UK:UKX +0.68% traded 0.5% higher at 5,782.77.
Banks were on the rise in France with shares of BNP Paribas SA FR:BNP +0.60% up 0.7%.
The CAC 40 index FR:PX1 +0.42% gained 0.2% to 3,485.24.
Among German stocks, shares of Commerzbank AG DE:CBK +4.09% climbed 3.4% and those of Deutsche Bank AG DE:DBK +0.84% DB -0.68% picked up 1.3%.
The DAX 30 index DX:DAX +0.87% added 0.7% to 7,231.39.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
