European Stocks Rebound on Boost From Earnings, Economic Data

European stocks climbed, snapping three days of losses, as companies including BP Plc and Rolls-Royce Holdings Plc reported better-than-forecast profit and data signaled a robust euro-area economy.

The Stoxx Europe 600 Index rose 0.1 percent at 8:31 a.m. in London. Gross domestic product in the 19-country region rose 0.6 percent in the second quarter, in line with estimates, while manufacturing PMI also showed expansion.

A long-awaited earnings revival has boosted European equities in 2017, even though a recent rally in the euro is stoking concern that it could derail the recovery. The strength of the shared currency has pushed earnings revisions into negative territory, according to a Citigroup Inc index. The Stoxx 600 has fallen 4.5 percent from a peak in May.

  • BP rose 3.7 percent, pushing energy shares to the best performance among industry groups, while Rolls-Royce jumped 9.9 percent after first-half profit more than doubled. The two stocks were among the biggest contributors to gains in the Stoxx 600.
  • Direct Line Insurance Group Plc climbed 6.3 percent after the insurer said it will aim to grow its dividend by 2 percent to 3 percent every year. 
    • CYBG Plc added 6.8 percent as the lender said it mortgages increased in the third quarter, while its net interest margin improved. 
    • Man Group Plc rose 4.5 percent after the hedge fund reported record assets under management.
  • Intertek Group Plc surged 8.7 percent after reporting better-than-expected sales and profitability for the first half.

— With assistance by Cormac Mullen

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