Skip to main content

LONDON (The Deal) -- European stocks started the first trading day of the fourth quarter in positive territory, amid signs of continued growth in the single-currency zone. Glencore (GLNCY)  led mining and commodity stocks higher in London.

 In London, the FTSE 100 was up 1.75% at 6,167.70, while in Paris the CAC 40 added 1.38% to 4,516.94. In Frankfurt, the DAX advanced 0.61% to 9.719.08. 

Benchmark indices rose, following the worst quarter since 2011, as investors tok some encouragement from the latest Markit Economics' Purchasing Managers Index figures for the eurozone. 

The final September reading for the single-currency area was 52.0, slightly below 52.3 for August but the same as the preliminary flash estimate and broadly in line with developments over the past seven months, as production and new business expanded at modest rates. 

U.K. manufacturing eased from 51.6 in August to 51.5 in September, though still above the key 50 threshold indicating growth. The British Chambers of Commerce was less positive in its quarterly U.K. economic survey, predicting moderate growth over the next year with "serious global challenges" crimping the recovery. 

European markets got an early bounce from Asia, where China's official September factory gauge came in slightly better than expected, though still near a three-month low. 

In London, Glencore was up nearly 7%, continuing its rebound from Monday's rout as metals prices rose. Among other mining stocks, Anglo American (AAUKF)  was up more than 4% while Antofagasta (ANFGF)  added 2.19%. 

Tullow Oil (TUWOY)  was also among top London gainers. Shares jumped 9.05% after the Africa-focused oil company released figures showing robust capital structure and the continued support of lenders during a period of low oil prices. 

In Frankfurt, exchange operator Deutsche Boerse (DBOEY) rose 4.32% after Barclays raised its rating on the stock to 'overweight,' which is comparable to a 'buy' recommendation. 

Bayer was also up slightly, adding 0.66%, after announcing a scaled-back IPO of its Covestro AG plastics division amid market volatility. It's now targeting proceeds of €1.5 billion compared to an original goal of €2.5 billion. 

Covestro, formerly known as Bayer MaterialScience, plans to use the money to repay debt to the parent company, based in Leverkusen, Germany. 

And in Madrid, Repsol (REPYY) rose 4.8% after announcing an agreement to sell part of its piped-gas business to Gas Natural Distribución and Redexis Gas for €651.5 million, allowing it to surpass its goal of divesting $1 billion in non-core assets following the acquisition of Canada's Talisman Energy

Anong decliners, Altice (ATCEY) slid 4.19% in Amsterdam after Patrick Drahi's cable company announced plans to sell €1.8 billion worth of shares and said it had successfully priced $8.6 billion of new debt to help finance its $17.7 billion acquisition of New York-listed Cablevision Systems (CVC)

The deal, agreed last month, will make Altice the fourth-largest cable operator in the U.S. after it combines Cablevision with Suddenlink Communications. 

Asian stocks also rose, with the Hang Seng adding 1.41% in Hong Kong to 20,846.30 and the Nikkei climbing 1.92% in Tokyo to 17,722.42. 

Later Thursday, all eyes will be on the U.S. for a fresh round of data from the world's largest economy, including the ISM September manufacturing index, due out at 10 a.m. EDT.

Must Read:

5 Big Stocks That Could Get Short-Squeezed This Fall