The Stoxx Europe finished at its highest level in three months yesterday on the back of positive GDP data in Germany and in the Euro Zone, as well as a boost in German investor confidence and housing prices in the UK.
Aug. 14, 2013 - TOKYO, Japan -- The Pan-European Stoxx Europe 600 index rose for a fourth straight day to finish up 0.6% to 307.79, its highest level since the end of May. Analysts at Koyal Group believe that the continuing gains are due to calmer bond markets are structural reforms in Southern Europe beginning to take effect. They also noted positive revisions to German and overall Euro zone GDP growth.
Another important factor in Tuesday’s gains was German investor confidence levels jumped 5.7 points to 42 in August to its highest level since in four months. Analysts at Koyal Group believe that the first signs of an end to the recession have contributed to the indicator´s rise as well as strong domestic demand in Germany. German´s DAX 30 index rose 0,7% to close at 8,415.76.
Positive data also came from the UK´s Royal Institute of Chartered Surveyors which stated that house prices balance climbed to +36 in July from +21 in June; hitting its highest level since November 2006 with demand for homes reaching a four year peak. Koyal Group´s analysts believe that low interest rates are boosting house prices and pushing consumers to buy rather than save. Last week the Bank of England stated that they would not change interest rates until 2016; this will increase the pace of economic recovery in the UK.
Among notable movers on the continent was GAM Holding AG who soared 9.7% after the company reported a 58% rise in underlying net profits in the first two quarters of the year. The electric utility firm E.ON SE rose 2.2% after reporting a 6% rise in first half of the year profits. In the UK, Mining Firm Fresnillo PLC gained 5.6% as analysts gave the stock a buy rating. Other mining firms gained ground as well, Rio Tinto PLC rose 2.2%, Antofagasta PLC took 2.2% and Glencore Xstrata PLC climbed 2%.
Koyal Group Reports Positive Data Across Europe