On Friday European and Asian stocks rose after economic reports in China indicated that the recovery will continue, Banco Santander SA said its outlook is “brilliant” and BP plc rallied. BP climbed 6.8 per cent, its first gain in five days. US futures advanced.
European shares edged higher, rising for the third day on optimism over global growth, while BP recovered on hopes it dividend might be deferred rather than cut as it continued battling an oil spill. The Wall Street Journal reported the British oil company was considering deferring or reducing its second quarter dividend to help quell the political uproar in the United States over the environmental disaster caused by the massive spill.
British newspapers also rounded on US President Barack Obama over his criticism of the company. However, analysts suggested rises in BP shares could be limited. US government scientists doubled their estimate of the amount of oil gushing out of its ruptured Gulf of Mexico well. The stock is still down 43 per cent since the oil spill started in mid-April.
Banks added to the previous session gains on the global growth optimism. Drugmakers featured among the top performers. Novartis gained 2.3 per cent after its multiple sclerosis pill Gilenia won strong backing from a US advisory panel. On the downside, the mining sector featured among the worse performers.
The pan-European FTSEurofirst 300 index of top shares was up 0.4 per cent. Across Europe, the FTSE 100 index was up 0.1 per cent, Germany’s DAX was down 0.2 per cent and France’s CAC 40 was up 0.3 per cent.
Asian stocks advanced for a second straight day as investor appetite for riskier assets rose on speculation Europe’s debt crisis won’t derail global growth. Japan’s Nikkei 225 Stock Average advanced 1.7 per cent, the biggest increase among equity benchmarks in the Asia-Pacific region.
Valletta Fund Management Ltd, The Mall Offices, Level 6, The Mall, Floriana VLT 16.
Freephone: 8007-2344, email: [email protected], internet address: www.vfm.com.mt
VFM is licensed by the MFSA