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European stocks rose, rebounding from yesterday’s first drop in five days, as data signaled euro-area manufacturing is expanding for the first time in two years and companies from Volvo AB to EasyJet Plc posted results. U.S. index futures gained and Asian shares were little changed.
The Stoxx Europe 600 Index added 0.5 percent to 300.85 at 9:06 a.m. in London. The gauge declined yesterday as a measure of U.S. manufacturing unexpectedly slumped.
Preliminary data today showed euro-area manufacturing is expanding this month for the first time since July 2011. A manufacturng index based on a survey of purchasing managers increased to 50.1 from 48.8 in June, Markit Economics said. Economists had predicted 49.1. A reading of 50 is the dividing line between expansion and contraction.
In Germany, manufacturing unexpectedly expanded in July and services growth accelerated, signaling that the recovery in Europe’s largest economy is building momentum.
In the U.S., Commerce Department data may show purchases of new houses increased to a 482,000 pace last month, the highest level since June 2008, according to the median forecast.
Volvo gained 3.1 percent to 96.10 kronor. Earnings before interest and taxes fell to 3.26 billion kronor ($505 million) in the second quarter, from 7.71 billion kronor a year earlier. Profit beat the 3.22 billion-kronor average by analysts.
EasyJet rose 5.3 percent to 1,407 pence after saying sales rose to 1.14 billion pounds ($1.75 billion) in the third quarter. The low-cost carrier said in an interim statement that it predicts second-half revenue per seat to increase by as much as 6 percent from a year earlier, assuming constant currency levels.
ARM Holdings Plc, which designs chips used in Apple Inc.’s devices, advanced 2.7 percent to 922.5 pence. Revenue increased 26 percent to 171.2 million pounds in the second quarter, beating the 165.1 million pounds predicted by analysts, as demand grew for advanced graphics and processing technology.
FTSE 100 6,641.51 +44.07 +0.67%
CAC 40 3,957.18 +34.09 +0.87%
DAX 8,364.87 +50.64 +0.61%
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