4:30 PM Frankfurt Ė European markets rebounded at the fastest pace in three weeks after latest economic data in the region indicated improved manufacturing sector. The data in China and U.S. also supported optimism. Spanish index dropped 1.7% after a regulator lifted short selling ban.
Stocks in the euro zone gained after the latest data on manufacturing from the region, China and the U.S. offered optimism.
In London trading, FTSE 100 index increased 56.1 or 0.9% to 6,333 and in Frankfurt DAX 30 index gained 67.6 or 0.9% to 7,844. In Paris, CAC 40 index surged 1.4% or 51.7 to 3,784.
IBEX 35 Index in Madrid declined 1.7% after the Spanish regulator lifted the ban on short selling bank stocks. Market indexes in 13 of the 17 nations in the euro zone closed lower.
Manufacturing sector in the euro zone declined at the slowest pace in January in 11 months. Markitís final read on Purchasing Managers Index increased to 47.9 from 46.1 in December.
Any reading below 50 indicates shrinkage in activities growth.
Two surveys in China reported an expansion in manufacturing at different rates. The official Chinese estimate suggested a smaller increase in manufacturing in January and HSBC survey was revised in the second reading to show faster expansion.
A private survey in the U.S. indicated manufacturing expanded in January. The Institute for Supply Managementís factory index increased to 53.1 in January from 50.2 in December.
Stocks in Review
BT Group soared 7% to 265 pence after the U.K. based largest fixed line phone company posted third quarter adjusted operating earnings of 1.55 billion pounds, beating the estimate of 1.52 billion pounds.
Banca Popolare di Milano increased 10% to 54.50 euro cents after a report in Repubblica said that the bank may reorganize as a joint-stock company. According to a presentation to union members from Chairman Andrea Bonomi, the company is planning to complete the transition by October.
Bankia SA plunged 10% to 46 euro cents after Spanish authorities lifted the ban on short selling. Fomento de Construccion & Contratas plunged 10% to 9 euros and Santandaer SA declined 4% to 5.96 euros.
Credit Agricole SA increased 3.3% to 7.52 euros despite the news that the fourth quarter earnings may take a hit on goodwill impairment charges of 2.68 billion euros.
Societe Generale and BNP Paribas gained more than 1.8%.
Electrolux declined 7% to SK155.90 after the second largest home appliance maker reported fourth quarter net income of SK291 million, missing the consensus estimate of SK320 million.
Tate & Lyle Plc decreased 0.9% to 805 pence after the sugar and sweetener maker estimated lower sucralose volume for the full year compared to previous year.