Publications
Partners
Frankfurt - European stocks advanced for a second day as companies including UBS Group AG and Adidas AG posted better- than-estimated results.
UBS rose 6.1% as Switzerland’s biggest bank said net income in the first three months of the year almost doubled. Adidas added 2.8% after first-quarter earnings topped forecasts.
The Stoxx Europe 600 Index gained 0.7% to 399.4 at 10:36 a.m. in London. Shares rebounded on Monday after their biggest weekly loss since December, as data showed manufacturers raised prices for the first time in eight months.
“We’re really only getting back on our feet after a fairly disruptive weekend with holidays and there’s a lot of catching up to do,” said Peter Dixon, an economist at Commerzbank AG in London.
“I don’t think there’s anything out there that could make us think last week was anything other than a modest slowdown after a pretty decent rally year-to-date. The earnings have been OK so far and Adidas and UBS are important stocks.”
The Stoxx 600 lost 3.4% last week as the euro rallied and the Federal Reserve left open the prospect of interest-rate increases even amid weak US economic growth. The equity benchmark has gained 17% this year.
Infineon Technologies AG advanced 3% after Germany’s largest chipmaker reported better-than-estimated quarterly sales. Metro AG climbed 1.7% after the German retailer posted a narrower second-quarter loss than analysts estimated.
Fiat Chrysler Automobiles NV rose 2.8% after Il Sole 24 Ore reported that the carmaker is close to choosing banks to run the spinoff of its Ferrari unit.
After the European Commission raised its euro-area growth forecast for this year, investors await data on US trade and service industries, also due on Tuesday. Traders are also looking ahead to Friday’s payrolls numbers amid speculation over the timeline for US rates.
