Friday, 08 May, 2015
(Bloomberg) — A rally in U.K. stocks pushed European shares higher after a surprise election victory for the Conservatives kept David Cameron on course to return as Britain’s prime minister. The Stoxx Europe 600 Index climbed 1.7 percent to 395.6 at 9:04 a.m. in London, poised for the best advance since January. The gauge erased a weekly drop, heading for a gain of 0.3 percent. Gains in banks, utilities and homebuilders sent the FTSE 100 Index up 1.7 percent as forecasts of the final tally signaled the Conservatives would win more than half the Parliament’s 650 seats, outnumbering Labour and allowing Cameron to end a coalition with the Liberal Democrats. “A Conservative victory wasn’t priced in,” said Jasper Lawler, a market analyst at CMC Markets Plc in London. “It’s a positive shock. That’s why we’re seeing the extent of the move in prices. Markets don’t like uncertainty, and there would’ve been uncertainty with a hung parliament. Now it looks like it’ll likely be a majority.” The volume of shares changing hands in Stoxx 600 companies was double the 30-day average, data compiled by Bloomberg show. European stocks fell earlier this week amid concern over market valuations and a U.S. economic recovery. Data at 8:30 a.m. in Washington may show payrolls in the world’s biggest economy climbed 228,000 in April, a faster pace than in March, according to forecasts. U.K. Shares British lenders, gas and electricity suppliers climbed after the defeat of Labour, which had pledged more levies on bank balance sheets and fixed prices in the household energy sector. Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc jumped more than 5.4 percent, while Centrica Plc and SSE Plc advanced at least 4.8 percent. Bellway Plc and Barratt Developments Plc rose more than 5.5 percent, pacing gains among U.K. homebuilders. Among shares active on corporate news, Syngenta AG surged 15 percent after the agrochemicals maker rejected an offer of 41.7 billion Swiss francs ($45 billion) by Monsanto Co., saying it was too low. Nokia Oyj added 3.3 percent after the New York Times reported that Uber Technologies Inc. has submitted a bid for its maps business. Enel SpA gained 2.1 percent and Nokian Renkaat Oyj jumped 9.7 percent after both companies reported quarterly sales and earnings that beat analysts’ estimates. Greece’s ASE Index declined 0.7 percent, snapping a two-day gain, before a May 11 meeting of euro-area finance ministers. Officials may consider tightening liquidity rules for Greek banks unless they see progress in the government’s talks with creditors, people familiar with the matter said this week. Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more visit the Mimecast website.