“European stocks rose, extending a near five-year high, as financial companies from HSBC Holdings Plc (HSBA) to Allianz SE reported results that topped analysts’ estimates. U.S. index futures were little changed, while Asian shares rose.
HSBC, Europe’s biggest lender, Societe Generale SA (GLE), France’s second-largest bank, and Germany’s Commerzbank AG all climbed at least 1.9 percent after posting results. Allianz SE, Europe’s largest insurer, gained 2.5 percent after reporting a jump in profit. Alstom SA (ALO) (ALO) sank 9.1 percent after the power- equipment maker cut its profit forecast.
The Stoxx Europe 600 Index (SXXP) rose 0.3 percent to 301.96 at 1:02 p.m. in London, as trading resumed in the U.K., Ireland and Greece after yesterday’s public holiday. The gauge has climbed 8 percent this year to its highest level since June 2008 as central banks maintained stimulus measures.
“I am overweight financials,” said Kevin Lilley, a fund manager at Old Mutual Asset Managers U.K. in London, which oversees about $6.1 billion. “It’s been a mixed bag on the earnings front, but surprises are coming through on the financials. I see the market continuing to grind higher.”
Futures on the Standard & Poor’s 500 Index gained 0.1 percent today, while the MSCI Asia Pacific Index rallied 1.2 percent as the Reserve Bank of Australia cut its benchmark interest rate to a record low.
The RBA unexpectedly reduced the overnight cash-rate target by a quarter percentage point to 2.75 percent. Eight of 29 economists predicted the seventh cut in the past 19 months, while money markets had seen about a 50-50 chance.
Five-Year High
Europe’s Stoxx 600 (SXXP) closed little changed near a five-year high yesterday as services and manufacturing output shrank for a 15th month, while European Central Bank President Mario Draghi said policy makers are ready to cut interest rates if needed….”
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