European stocks surge 2% to break 2-day run of losses

European stocks climbed Thursday, with bank and commodity shares catching a break from recent declines, helping the regional benchmark to its first rise in three sessions.

The Stoxx Europe 600 climbed 2% to close at 326.54, with all sectors trading higher. The index logged its biggest percentage gain since Feb. 17.

Among best performers in the Stoxx 600 was Technip SA as shares leapt 12%. The French oil-services provider said profit jumped 27% in the fourth quarter. But the company also warned revenue may drop in 2016 on sliding oil prices.

In Frankfurt, the DAX 30 gained 1.8% to 9,331.48 and France’s CAC 40 picked up 2.2% to 4,248.45. Italy’s FTSE MIB was pushed up 2.3% to 17,104.54.

Source: MarketWatch

MARKET

Hong Kong Stocks Tumble to Three-Year Low After Trading Break

Hong Kong stocks tumbled after a three-day holiday as a global equity rout deepened amid concern over the strength of the world economy.

The Hang Seng Index plunged 4.3 percent at 9:31 a.m. in Hong Kong, heading for its lowest close since June 2012. The MSCI All-Country World Index dropped 2.1 percent since the city’s markets closed last week. Energy producers led declines after crude slumped 11 percent during the holidays. The Hang Seng China Enterprises Index retreated 5 percent, poised for its biggest loss since August.

Hong Kong’s benchmark equity gauge tumbled 12 percent this year through Friday amid concern that capital outflows, a slumping property market and China’s economic slowdown will hurt earnings. Some speculators have been betting on an end to the city’s currency peg to the dollar. Tuesday’s riots in the shopping district of Mong Kok threatens to deter mainland visitors and worsen a drop in retail sales, according to UOB Kay Hian (Hong Kong) Ltd.

Plunges in crude and concerns over the perceived creditworthiness of European banks has fueled uncertainty over the strength of the world economy this week. Oil fell to $ 26.91 a barrel in New York, compared with $ 31.72 a barrel at the close on Feb. 4. Kyle Bass, the hedge fund manager who successfully bet against mortgages during the subprime crisis, said China’s banking system may see losses of more than four times those suffered by U.S. banks during the last crisis.

Source: Bloomberg

MARKET