BLBG: European Stocks Rebound From Weekly Drop as Miners Lead Gains
China's central bank governor says stability will return
Commodity producers advance as metals prices increase
The selloff that wiped out two days of European equity gains is showing signs of easing.
The Stoxx Europe 600 Index advanced 0.3 percent to 354.12 at 1:17 p.m. in London, after earlier rising as much as 1.2 percent. European stocks tumbled on Friday, deepening a weekly loss amid mixed U.S. jobs data as concern about the strength of the global economy and an impending Federal Reserve rate increase returned to center stage. The volume of shares changing hands was 28 percent lower than the daily average today. A measure of European-stock volatility rose 1.2 percent. U.S. markets are closed for a holiday.
“Nothing has fundamentally changed in Europe so this is really all about sentiment,” said Daniel Murray, London-based head of research at EFG Asset Management. “Markets go down one day and up the next -- volatility is something investors have to get used to now. Worries about growth in China are going to be less important as the focus moves towards the Fed for the next 10 days. You can make strong arguments either way about whether or not they will hike.”
In China, the governor of the country’s central bank forecast a return to stability for markets. The world’s second-largest economy is seeking to bolster confidence after concerns over growth spurred the biggest monthly drop in global equities since 2012 in August.
Data showing German industrial production increased in July also added to investor optimism today.
Among stocks moving on corporate news, Glencore Plc added 6 percent after the commodity trader said it will sell assets and shares to cut its $30 billion net debt.
Miners posted the biggest gain of the 19 industry groups on the Stoxx 600. Antofagasta Plc rose 6.9 percent, leading the advance, as metals prices climbed on China’s attempts to assuage concerns about the country’s recent currency moves and stock market volatility.
