BHP Billiton Ltd., the world’s largest mining company, rallied 2.1 percent in London as metals prices climbed. Bayerische Motoren Werke AG increased 2.9 percent after the carmaker was upgraded at Credit Suisse Group AG. Clariant AG climbed 5.4 percent after Exane BNP Paribas recommended buying the shares.
The Stoxx Europe 600 Index rose 1.1 percent to 266.36 at 10:33 a.m. in London, the highest intraday level since Sept. 26, 2008. The measure climbed 3.8 percent in the first three months of 2010, a fourth straight quarter of gains, as the European Union agreed a contingency rescue package to help Greece cut Europe’s biggest budget deficit and the Federal reserve pledged to keep interest rates low for an extended period.
“The strength of the economic recovery was underestimated and the positive dynamic is still under way,” said Rudolf Buxtorf, who helps manage about $500 million at RBS Coutts Bank in Zurich. “It’s too early to be euphoric but the positives have moved to the foreground. There are few alternatives to equities.”
Fifth Weekly Gain
The Stoxx 600 is heading for a fifth straight weekly advance, the longest winning streak in almost a year. The gauge has surged 69 percent from a 12-year low in March 2009 amid signs the economy is recovering the deepest recession since World War II.
Europe’s manufacturing industry expanded at a faster pace than initially estimated in March, adding to signs that a euro- area recovery is gaining strength. A manufacturing index for the 16 nations that use the euro increased to 56.6 from 54.2 in February, London-based Markit Economics said. That’s above an initial estimate of 56.3 published on March 24 and the fastest pace since November 2006.
An index of U.K. manufacturing rose to 57.2 in March from 56.5 in February, the Chartered Institute of Purchasing and Supply and Markit said. That was the highest since October 1994.
The MSCI Asia Pacific Index gained 1.1 percent today. China’s manufacturing Purchasing Managers’ Index rose to a seasonally adjusted 55.1 last month from 52 in February, according to Li & Fung Group. India’s manufacturing grew for a 12th straight month in March, according to HSBC Holdings Plc and Markit Economics.
Japanese Tankan
The Tankan index of sentiment among Japan’s largest manufacturers rose to minus 14 in March from minus 25 in December, the least pessimistic since 2008, according to the Bank of Japan.
Futures on the Standard & Poor’s 500 Index expiring in June advanced 0.5 percent.
A report at 10 a.m. New York time may show U.S. manufacturing grew at a faster pace in March, keeping factories at the forefront of the recovery. The Institute for Supply Management’s factory index rose to 57 from 56.5, according to the median estimate in a Bloomberg News survey of 77 economists. Readings greater than 50 signal expansion. Another report at the same time may show construction dropped.
Data from the Labor Department, due at 8:30 a.m. New York time, may show initial jobless claims fell by 2,000 last week to a seven-week low of 440,000. A separate report tomorrow is forecast to show U.S. payrolls rose by 190,000 in March, the biggest gain in three years, according to the median estimate of 62 economists surveyed by Bloomberg News.
Mining Companies
BHP Billiton rose 2.1 percent to 2,308 pence as copper climbed in London, leading a measure of mining companies to the biggest gain among 19 industry groups in the Stoxx 600. Rio Tinto Group, the world’s third-largest mining company, advanced 2.8 percent to 4,015 pence. Xstrata Plc, the biggest producer of coal for power stations, climbed 2.8 percent to 1,283.5 pence.
BMW rallied 2.9 percent to 35.17 euros. The world’s biggest maker of luxury cars was raised to “outperform” from “underperform” at Credit Suisse, which cited a “positive” pricing strategy.
Clariant advanced 5.4 percent to 14.14 Swiss francs. Exane reiterated its “outperform” rating on the shares before the world’s biggest maker of printing-ink chemicals reports better- than-estimated first-quarter profit this month.
Petroplus Holdings AG, Europe’s biggest independent refiner by capacity, surged 4.9 percent to 20.55 francs amid speculation oil-refining profits will recover further.
“We see average first quarter 2010 European margins back up to levels at least comparable with the second and third quarter 2009,” London-based broker Collins Stewart said in a note.
Richemont Rises
Cie. Financiere Richemont SA advanced 1.9 percent to 41.59 francs. The world’s largest jewelry maker agreed to buy the remainder of Net-a-Porter LLC, valuing the online fashion retailer at 350 million pounds ($533 million).
Mergers and acquisitions gained momentum in the first quarter with more than 2,034 cross-border transactions and 10 hostile takeovers signaling a recovery from the worst deal market in six years, according to data compiled by Bloomberg.
Orion Oyj sank 12 percent to 14.47 euros for the biggest drop in the Stoxx 600. Stalevo, a drug for Parkinson’s Disease from the Finnish maker of treatments for nervous-system disorders and Novartis AG, may be linked to an increase risk of prostate cancer, the U.S. Food and Drug Administration said.
Michelin & Cie. declined 1.8 percent to 53.59 euros. The world’s second-biggest tiremaker was downgraded to “hold” from “buy” at Deutsche Bank AG.
