European Stocks Rising on Positive Economic Indicators
LONDON (The Deal) -- European markets were relatively buoyant this morning, despite falls in Asia overnight. Economic indicators showed the U.K.'s strong recovery continued -- although analysts were slightly disappointed that the Office for National Statistics did not revise its annual growth prediction of 1.7% upwards, as forecast.
In Italy, the Italian government statistical office showed manufacturing industry confidence at its highest for three years. French consumer spending was also up 1%, though much of that increase was because of higher heating costs from an unusual cold snap in May.
Two French initial public offerings this morning showed just how fickle the market has become for the many stocks still waiting to float. The credit insurer Coface soared on debut this morning, rising over 5.5% from its IPO price of 10.40 euros a share and starting market capitalization of 1.66 billion euros ($2.26 billion). But online payments business Worldline, spun out of French multinational Atos, saw its shares dip 0.5% after starting at 16.40 euros, and a market capitalization of about 2.1 billion euros ($2.6 billion).
Also in Paris, Airbus Group was up 1.5% at 49.27 euros after announcing plans to revamp A330 models with Rolls-Royce engines. In London, Rolls-Royce also flew, rising 1.43% to 1,061 pence.By 1100 BST, the FTSE100 was up 0.13% at 6,744, while in Paris, the CAC40 was up 0.22% at 4,449 and in Frankfurt, the DAX was 0.13% at 9,818. Earlier Tokyo's Nikkei225 closed down 1.39% at 15,095 as the latest figures showed the inflationary surge induced by government and central bank stimulus policies seemed to have run out of steam. -- Written by Jonathan Braude in London
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