LONDON: Upbeat Chinese and eurozone economic data, combined with receding investor concerns over a US intervention in Syria, sent European equities climbing yesterday, dealers said.
The euro slipped to $1.3193 from $1.3218 late on Friday. The dollar climbed to 99.34 yen from 98.17 yen. On the London Bullion Market, gold prices dipped to $1,392.25 per ounce from $1,394.75.
The safe-haven precious metal had surged to a peak of $1,433.83 last Wednesday as investors sought shelter from Syria worries. That was the highest level since May 14.
London’s benchmark FTSE 100 index ended the day 1.45 percent higher at 6,506.19 points, while Frankfurt’s DAX 30 climbed 1.74 percent to 8,243.87 points and the CAC 40 in Paris jumped 1.84 percent to 4,006.01 points.
Madrid rose 1.68 percent and Milan climbed 1.84 percent.
“Today, the FTSE has sprinted out of the blocks ... with a combination of improving Chinese manufacturing figures and the reduced likelihood of military action in Syria probably being the largest contributing factors,” said analyst Alastair McCaig at traders IG. He added: “A war against Syria looks less likely for the time being. This has lifted the negative pressure that had been stifling the markets, and as a result all major European markets have surged higher.”
Wall Street was closed yesterday for a public holiday. Asian equities mostly rose after strong manufacturing data indicated a slowdown in China may be coming to an end. Hong Kong stocks powered 2.04 percent higher and Sydney won 1.03 percent, while Shanghai nudged up 0.07 points and Tokyo increased by 1.37 percent.
Data showed over the weekend that China’s official purchasing managers’ index (PMI) of manufacturing hit 51.0 last month, up from 50.3 in July and the best reading since April last year.
Added to the positive news flow, eurozone manufacturing activity hit a 26-month high in August, confirming other data that shows the bloc coming out of a deep recession. The PMI for the manufacturing sector compiled by Markit Economics jumped to a final 51.4 points in August from 50.3 in July.
The Chinese data meanwhile bolstered London’s mining sector, with Anglo American up 4.16 percent at 1,540 pence, Rio Tinto gaining 3.98 percent to 3,029 pence and Vedanta Resources adding 3.10 percent to 1,198 pence. China is a major consumer of metals.
AFP
