European indices surge with strong trade data from China

Wednesday, 13. April 2016 10:27

Shares in Europe jumped in early trade on Wednesday, echoing the effects of oil prices recovery and further boosted by a jump in China's exports last month. The sharp advances were led by mining stocks and financials, as investors regained some confidence in the economy of the most populous country. The euro fell against the dollar and underlying inflation in France and Spain today showed signs of recovery.

The CAC 40 rallied 1.97% at 10:15 a.m. CET. ArcelorMittal was headlining the gains with 6.35%, followed by Societe Generale's jump by 5.29%. BNP Paribas, Axa and LafargeHolcim all climbed 4% or more. The rise in consumer prices in March, driven by manufacturing, was 0.7%, with an annual drop of 0.1%, but the seasonally adjusted increase was 0.1%, following a fall of 0.2% on the month in February, national statistics revealed. Energy prices saw a first uptick after nine months of declines. Core inflation grew 0.1% in March and 0.6% year on year, compared to an annual rate of 0.7% in February. Harmonised for European purposes, the consumer price index increased 0.8% on the month, but came in 0.1% lower than in the same month of 2015.

Spanish inflation, measured by consumer prices, was at 0.8% below zero in March on an annual basis, but it was 0.6% on the positive side on the month, compared to a monthly fall in prices of 0.4% and a yearly drop of 0.8% in February. The harmonised gauge was down 1% in March, but jumped 2% on the year, compared to the annual decline of 0.4% from February. The IBEX 35 rose 1.15% at 10:00 a.m. CET in Madrid.

The DAX added 2% at 10:16 a.m. CET. ThyssenKrupp surged 4% after reports it is negotiating the establishment of a European joint venture with Tata Steel. Still, leading the gainers were Deutsche Bank, up almost 5%, and Volkswagen, rising 4.2%.

The FTSE 2016 returned the losses from the start of the year and traded 1.27% in the green at 10:05 a.m. CET. Anglo American rose 6.6%, Rio Tinto advanced 6% and BHP Billiton soared 5.4%, boosted by the rise in commodity prices. Standard Chartered was next in the winners group, rocketing over 5%. On the other end of the chart, Tesco sunk over 3.5%, after today's report on a return to profits last year didn't impress investors. The company said it forsees improvement in speed of profitability.

Italian FTSE MIB index jumped 2.05% in Milan at 10:09 a.m. CET on the wings of banks, benefitting from the establishment of a rescue fund. The euro lost 0.37% versus the dollar and gained 0.15% compared to the franc at 10:26 a.m. CET.

Image: EPA / Andrew Gombert

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