European Stocks Climb for Second Day as Miners, Automakers Rise

Gains in commodity producers and carmakers pushed European stocks up for a second day.

The Stoxx Europe 600 Index rose 0.3 percent at 8:11 a.m. in London. Miners advanced for the first time in five days as commodities climbed. Automakers gained, with the euro trading near its lowest level since April.

The European stock benchmark gauge rallied 1.4 percent yesterday, climbing after a two-day slump. The index is again nearing a three-month high, spurred by speculation the European Central Bank will add to stimulus measures and that the global economy is strong enough to withstand an increase in U.S. borrowing costs.

Europe’s stocks have regained more than half of their losses since a September low, with the Stoxx 600 closing yesterday 8 percent below the record reached in April. While they’re up in November for a second month, travel shares have been hurt amid terror attacks and geopolitical tensions, and miners further declined as commodities reached their lowest prices since 1999.

U.S. markets are closed today for the Thanksgiving holiday. Futures on the Standard & Poor’s 500 Index expiring in December rose 0.1 percent.

BHP Billiton Ltd. lost 2 percent in London after a United Nations probe into a deadly mine spill said steps that the company took to prevent harm weren’t sufficient. Remy Cointreau SA dropped 1.5 percent as its profit fell more than analysts projected.

Infineon Technologies AG jumped 10 percent after it reported better-than-expected operating income.

Source : Bloomberg

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Chinese Stocks in Hong Kong Rise 4th Day as Automakers Gain

Chinese stocks in Hong Kong rose in their best four-day run since April as automakers resumed their advance and casino operators extended gains.

The Hang Seng China Enterprises Index added 0.5 percent to 9,931.53 at the close in Hong Kong, capping a 7.6 percent four-day increase, as supportive policies from China’s government for car manufacturers and developers buoy investor sentiment, along with prospects of the U.S. keeping interest rates lower for longer. BYD Co. and Geely Automobile Holdings Ltd. climbed, building on last week’s advance after a tax cut on passenger-vehicle purchases. Sands China Ltd. and Wynn Macau Ltd. jumped at least 7.4 percent after JPMorgan Chase & Co. raised its ratings on the gaming companies.

The Hang Seng Index slipped 0.1 percent after rising as much as 1.4 percent, dragged by personal computer maker Lenovo Group Ltd. Mainland markets are shut until Oct. 8 for National Day holidays. The Hang Seng China Enterprises Index is trading at 7.4 times estimated earnings, less than half the global average, after tumbling as much as 39 percent from this year’s peak on concerns about China’s economy. The nation’s growth will slow to 6.8 percent this year, below the government’s goal of 7 percent, according to the median of economist estimates compiled by Bloomberg.

Source: Bloomberg

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