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European shares up on Chinese data

The FTSEurofirst 300 was up 0.3% at 1,091.93 by 0708 GMT dropped 1.7% on Tuesday.

Written by Agencies | London | Published: October 24, 2012 2:52 pm

European shares rose on Wednesday,clawing back some of the previous session’s steep losses after encouraging data from China,though worries over corporate earnings could limit gains.

The HSBC Flash Manufacturing Purchasing Managers Index (PMI) for China climbed to a three-month high of 49.1 in October and new orders and output rose,pointing to a turnaround in the economy. But the recovery is likely to be slow as the PMI stayed below 50 separating expansion from contraction.

The FTSEurofirst 300 was up 0.3 percent at 1,091.93 by 0708 GMT,having dropped 1.7 percent on Tuesday.

The third quarter results season,however,continued to offer disappointments,with world number two truck maker Volvo posting a bigger-than-expected fall in third quarter earnings and forecasting no growth in its key markets in 2013.

The amount of profit warnings out there is staggering so it remains hard to see this market make much progress without news about a Spain bailout,said Lex van Dam,hedge fund manager at Hampstead Capital,which manages around $500 million of assets.

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