Eurostoxx 50:2,955.36 (+19.06) Frankfurt DAX:7,356.51 (+61.02) Paris CAC:4,045.29 (+23.41)
EUROPEAN STOCKS climbed for a fourth day yesterday, as better than estimated earnings from UBS outweighed a report that China tightened capital targets for its biggest banks.
UBS surged the most in more than two months as Switzerland’s largest lender attracted the most new money from wealthy customers since the end of 2007.
Parmalat jumped after Groupe Lactalis said it will bid for the rest of Italy’s biggest dairy company.
Basic-resource companies limited gains as commodities snapped a four-day winning streak.
UBS rallied 3.9 per cent to 17.23 Swiss francs, the biggest increase since February. Wealth management and retail clients added a net 16.7 billion francs ($19 billion) in the first quarter, more than double the estimate of analysts surveyed by Bloomberg.
Parmalat surged 11 per cent to €2.56, the biggest gain since it returned to the stock market in 2005 following Italy’s biggest bankruptcy two years earlier.
Micro Focus International rallied 6.8 per cent to 360.8p after the UK software company said it has received a preliminary takeover approach.
Aegon NV gained 3.3 per cent to €5.38 after agreeing to sell its Transamerica Reinsurance unit to Scor, France’s largest reinsurer, for $912.5 million.
Scor advanced 2 per cent to €19.80, a fourth straight increase.
Umicore gained 6.5 per cent to €38.49. The world’s largest precious-metals recycler forecast 2011 earnings before interest, taxes and special items will rise up to 24 per cent to as much as €425 million($621 million).
Puma jumped 5.8 per cent to €220.60, the biggest increase in 11 months.
Pirelli advanced 4 per cent to €7.03.
Mining companies fell as commodities declined, led by silver and copper, after China was said to be tightening its credit policy.
Anglo American retreated 1 per cent to 3,132p and Randgold Resources dropped 2.1 per cent to 5,195p.
China’s banking regulator set capital targets for the five biggest lenders above the minimum 11.5 per cent ratio last month amid concern that credit risks may rise, three people with knowledge of the matter told Bloomberg News. – (Bloomberg)
