European stocks advanced as better-than-expected manufacturing in the region outweighed disappointing Chinese output data.
Commerzbank AG rose 6.6 percent after the German lender said quarterly earnings increased by 25 percent, while Chief Executive Officer Martin Blessing prepares to leave the company. HSBC Holdings Plc fell 0.8 percent as RBC Capital said that the bank’s decline in income will lead analysts to downgrade their estimates. Rio Tinto Group and BHP Billiton Ltd. lost at least 1.4 percent, dragging a gauge of miners to among the worst performers of the 19 industry groups on the Stoxx Europe 600 Index as commodity prices slid.
The Stoxx 600 climbed 0.3 percent to 376.75 at the close of trading, reversing a loss of as much as 0.7 percent. Shares extended gains earlier as a Markit Economics release showed output in the euro area unexpectedly accelerated in October as German companies fared better than initially reported. China’s official purchasing managers index contracted last month, missing estimates and rekindling concern about growth and demand in the world’s second-largest economy.
The Stoxx 600 posted its best monthly rally in six years in October after President Mario Draghi said the European Central Bank will consider additional easing in December, and China increased stimulus measures. The equity gauge’s rebound from a quarterly rout has been led by gains in carmakers, miners and energy producers — the groups most battered in the selloff.
Source : Bloomberg