European Stocks Rebound as Commerzbank, Deutsche Bank Surge

A rebound in banks helped lift European stocks from their lowest levels since 2013, trimming a second weekly decline.

Commerzbank AG jumped 18 percent, the most since 2009, after saying it returned to profit. That eased concerns that the region’s lenders will fail to find a way to remain profitable in a low-rate environment, which sent them to their biggest plunge since August 2011 on Thursday. Deutsche Bank AG climbed 12 percent after saying it will buy back about $ 5.4 billion of bonds. Energy producers and miners also surged with a rise in commodities.

The Stoxx Europe 600 Index rose 2.9 percent at 4:38 p.m. in London, also boosted by data showing that the region’s recovery kept its momentum. Germany led the euro area’s growth to 0.3 percent in the fourth quarter, matching economists’ forecasts. With Friday’s rally, the benchmark equity gauge pared its weekly drop to 4.1 percent as the volume of shares changing hands was about a fifth greater than the 30-day average.

European equities have been among the most hurt during the rout that erased about $ 8.6 trillion from stocks worldwide this year alone. The Stoxx 600 closed on Thursday 27 percent below its April record, taking its valuation to 13.5 times estimated earnings from more than 17 at its peak. Among 93 global equity gauges tracked by Bloomberg, five of the 10 worst performing were from Europe, with Germany’s DAX Index down 19 percent in 2016 and Italy’s FTSE MIB Index falling 26 percent. A gauge of stock volatility for the region has jumped 19 percent this week and reached its highest level since August.

Source : Bloomberg


Europe Shares Struggle to Hold Rebound; Deutsche Bank Advances

European stocks struggled to hold on to an early rebound, trading near their lowest level since October 2013 as investors assessed valuations following seven days of declines.

A measure of lenders was among the best performers on the Stoxx Europe 600 Index, with Deutsche Bank AG rising 3 percent as a person familiar with the matter said the German bank is considering buying back some of its debt. Commerzbank AG climbed 3.1 percent.

The Stoxx 600 advanced 0.1 percent to 309.66 at 8:22 a.m. in London. The index is still in so-called “oversold” territory. The equity benchmark now trades at 13.7 times estimated earnings, about 21 percent below its April 2015 peak. A gauge tracking stock swings has jumped 53 percent this year.

Among stocks moving on corporate news, Carlsberg A/S gained 2.7 percent after the brewer reported a smaller-than-projected drop in quarterly profit and forecast higher earnings this year.

Opera Software ASA soared 41 percent after the Norwegian maker of web browsers agreed to sell itself to a group of Chinese technology companies.

Tullow Oil Plc slipped 1.7 percent after reporting a wider-than-expected full-year loss as tumbling crude prices forced the company to record writedowns.

Hermes International SCA dropped 2.9 percent after the French maker of luxury bags predicted sales growth this year may fall short of its target.

A.P. Moeller-Maersk A/S fell 8.6 percent after the shipping company posted an 84 percent plunge in 2015 profit and wrote down the value of its oil assets.

Telenor ASA slipped 5.1 percent after saying competition in markets such as Thailand and Malaysia will put pressure on 2016 profitability.

Source: Bloomberg