AFP, London :
European stock markets rallied Wednesday in a positive start to the second quarter on the back of upbeat manufacturing data in China and the eurozone, dealers said.
In late morning deals, London’s benchmark FTSE 100 index of top companies jumped 0.98 percent to 6,839 points and the CAC 40 in Paris won 1.45 percent to 5,106.60 points.
Frankfurt’s DAX 30 index gained 1.10 percent to 12,098 points compared with Tuesday’s closing level.
The European single currency however eased to $1.0739 from $1.0741 late in New York on Tuesday, as traders nervously eyed on Greek debt talks.
“The major European indices have begun to pick up on this first day of a new quarter, with the positive Chinese manufacturing data last night being joined by a strong set of figures from the eurozone,” Spreadex analyst Connor Campbell told AFP.
Eurozone manufacturing activity accelerated sharply in March in a fresh sign of economic recovery, a key survey showed. Markit Economics said its Purchasing Managers Output Index (PMI) for the 19-nation single currency bloc’s manufacturing sector climbed to 52.2 points last month from 51 in February, according to a second estimate, putting it well above the 50-points boom or bust line. That marked an upgrade from the initial March reading of 51.9 points.
“Better-than-expected eurozone PMIs helped to accelerate the momentum to the upside,” noted analyst Markus Huber at broker Peregrine & Black.
Asian equities mostly fell, but Hong Kong and Shanghai climbed on the Chinese data.
China said its official PMI came in at 50.1 last month, up from 49.9 in February and the first result since December above the crucial 50-point level.
The figure will come as welcome news after a string of weak data that have reinforced concerns about a slowdown in the Chinese economy and led to two interest rate cuts by the country’s central bank.
In reaction to the data, Hong Kong stocks won 0.73 percent and Shanghai soared 1.66 percent.
“Today it’s all about manufacturing kicking things off,” said IG analyst Alastair McCaig.
“The overnight figures from China have shown that it has managed to remain on the side of growth.”
Other Asian markets however retreated Wednesday after losses on Wall Street, with Tokyo also hurt by a disappointing reading of Japanese business confidence.
Tokyo stocks dived 0.90 percent, Seoul closed 0.62 percent lower and Sydney fell 0.52 percent in value.
Wall Street stocks had tumbled Tuesday, snapping a two-day winning streak to close the first quarter on a sour note as volatility in equity markets stays high.
New York’s Dow Jones Industrial Average sank 1.11 percent in value.
US stocks have been choppy as investors ponder US monetary policy, Greece’s prospects for staying in the eurozone and the recent big drop in oil prices.
Meanwhile on Wednesday, Athens continued tough talks with its creditors on a disputed list of reforms.
A deal on Greece’s bailout is possible before the end of April, EU Council President Donald Tusk said.
Experts from the International Monetary Fund and the European Union are scrutinising a list of economic reforms proposed by Athens in a bid to unlock another 7.2 billion euros ($7.8 billion) in loans to stave off possible bankruptcy and a euro exit. Greece says the reforms would help raise an extra three billion euros for government coffers without resorting to wage and pension cuts.
European stock markets rallied Wednesday in a positive start to the second quarter on the back of upbeat manufacturing data in China and the eurozone, dealers said.
In late morning deals, London’s benchmark FTSE 100 index of top companies jumped 0.98 percent to 6,839 points and the CAC 40 in Paris won 1.45 percent to 5,106.60 points.
Frankfurt’s DAX 30 index gained 1.10 percent to 12,098 points compared with Tuesday’s closing level.
The European single currency however eased to $1.0739 from $1.0741 late in New York on Tuesday, as traders nervously eyed on Greek debt talks.
“The major European indices have begun to pick up on this first day of a new quarter, with the positive Chinese manufacturing data last night being joined by a strong set of figures from the eurozone,” Spreadex analyst Connor Campbell told AFP.
Eurozone manufacturing activity accelerated sharply in March in a fresh sign of economic recovery, a key survey showed. Markit Economics said its Purchasing Managers Output Index (PMI) for the 19-nation single currency bloc’s manufacturing sector climbed to 52.2 points last month from 51 in February, according to a second estimate, putting it well above the 50-points boom or bust line. That marked an upgrade from the initial March reading of 51.9 points.
“Better-than-expected eurozone PMIs helped to accelerate the momentum to the upside,” noted analyst Markus Huber at broker Peregrine & Black.
Asian equities mostly fell, but Hong Kong and Shanghai climbed on the Chinese data.
China said its official PMI came in at 50.1 last month, up from 49.9 in February and the first result since December above the crucial 50-point level.
The figure will come as welcome news after a string of weak data that have reinforced concerns about a slowdown in the Chinese economy and led to two interest rate cuts by the country’s central bank.
In reaction to the data, Hong Kong stocks won 0.73 percent and Shanghai soared 1.66 percent.
“Today it’s all about manufacturing kicking things off,” said IG analyst Alastair McCaig.
“The overnight figures from China have shown that it has managed to remain on the side of growth.”
Other Asian markets however retreated Wednesday after losses on Wall Street, with Tokyo also hurt by a disappointing reading of Japanese business confidence.
Tokyo stocks dived 0.90 percent, Seoul closed 0.62 percent lower and Sydney fell 0.52 percent in value.
Wall Street stocks had tumbled Tuesday, snapping a two-day winning streak to close the first quarter on a sour note as volatility in equity markets stays high.
New York’s Dow Jones Industrial Average sank 1.11 percent in value.
US stocks have been choppy as investors ponder US monetary policy, Greece’s prospects for staying in the eurozone and the recent big drop in oil prices.
Meanwhile on Wednesday, Athens continued tough talks with its creditors on a disputed list of reforms.
A deal on Greece’s bailout is possible before the end of April, EU Council President Donald Tusk said.
Experts from the International Monetary Fund and the European Union are scrutinising a list of economic reforms proposed by Athens in a bid to unlock another 7.2 billion euros ($7.8 billion) in loans to stave off possible bankruptcy and a euro exit. Greece says the reforms would help raise an extra three billion euros for government coffers without resorting to wage and pension cuts.
