Banks and Automakers Drive European Markets Higher

Nigel Thomas
25 Jun, 2013
New York City

European markets rebounded a day after indexes extended losses and erased yearly gains. Business confidence index in France improved moderately in June. Automakers in Europe traded higher and banks led the gainers.

[R]2:55 PM Frankfurt – European markets rebounded a day after indexes extended losses and erased yearly gains. Business confidence index in France improved moderately in June. Automakers in Europe traded higher and banks led the gainers.[/R]

European markets traded higher after erasing most of the gains in the year and Chinese money market stabilized.

In London, FTSE 100 index increased 1.1% to 6,093 and in Frankfurt the DAX index added 1.5% to 7,807.

In Paris, CAC 40 index gained 1.4% to 3,647 and market indexes in Switzerland, Italy and in Spain added nearly 1%.

Italian bond yield fell 9 basis points to 4.74% from a four-month high in yesterday’s trading.

Hungary’s central bank lowered its policy rate for the eleventh month in a row after holding rates steady for seven months.

The policy rate was lowered 25 basis points to 4.25% and the bank has cut its reference rate every month since July 2012.

Consumer price inflation increased slightly to 1.8% in May largely on the food price increase of 3.7%.

Stocks in Review

European banks closed higher after broad rebound in stock markets in the euro zone.

UBS AG increased 1.7% and Deutsche Bank AG added 1.4% and HSBC gained 2%.

Broker speculation and comments led chipmaker ARM Holdings Plc higher by 3% and Vinci S.A. up by 3.4%.

Peugeot soared 5% after the second largest automaker in Europe said its redesigned crossover received 26,000 orders.

Separately, Fiat SpA increased 1.5% and Renault S.A. added 4.5%.

Mediaset SpA increased 2% to 2.43 euros and recovered from the 5% fall in yesterday’s trading after an Italian court convicted Silvio Berlusconi for paying minor for sex and sentenced to seven years in prison.

Berlusconi can appeal the judgment two times and the appeal process can drag for your years.