• Major stock indices in Europe show a positive trend

Market news

3 October 2016

Major stock indices in Europe show a positive trend



European stocks traded in the green zone on the rise of energy companies and financial firms. Support for indices also provides statistics for the euro area and the United Kingdom.

The final data published by Markit Economics showed that business activity in the euro zone's manufacturing sector accelerated last month, confirming preliminary estimates. The PMI for the manufacturing sector rose to 52.6 points compared with 51.7 points in the previous month. In addition, the report stated that the growth of production, new orders, new export orders and employment accelerated in September compared to August. "Today's PMI data indicate that the production, which grew at a steady pace in the second quarter (by about 2 per cent per annum), gained further momentum in September," - said Chris Williamson, chief economist at the business IHS Markit.

A separate report from Markit Economics and CIBS showed that UK's manufacturing sector expanded in September at the fastest pace since mid-2014, helped by faster growth in output and new orders. As it became known, the index of manufacturing activity improved in September to 55.4 points compared to 53.4 points in August. The last reading was the highest since June 2014. Economists had expected the index to decline moderately to 52.1 points. "The rebound in the last two months has been encouragingly strong, and puts the sector on course, which will provide an additional positive contribution to GDP in the 3rd quarter," - said Rob Dobson, senior economist at Markit.

The composite index of the largest companies in the region Stoxx Europe 600 up 0.2 percent. The trading volume today is about 15 percent lower than the average for the last 30 days, as the German stock exchange is closed for a national holiday.

FTSE 100 index in Britain rose by more than 1.1 per cent, the best result among the Western European markets. Exporting companies benefited from a significant drop in the pound after UK Prime Minister Theresa May said it will triger article 50 at the end of March 2017.

Capitalization of Royal Dutch Shell Plc rose by 3 percent, supported by rising oil prices.

Shares of Henderson Group Plc rose 12 percent after the company announced a merger with the American Janus Capital Group Inc. As a result of this transaction, the Group will be established with assets of more than $ 320 billion and a total market capitalization of more than $ 6 billion.

At the moment:

FTSE 100 +80.78 6980.11 + 1.17%

DAX Closed

CAC 40 +13.62 4461.88 + 0.31%

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