By Tommy Stubbington
European stocks climbed Wednesday after better than expected
eurozone manufacturing data, a further sign that the region's
economy is picking up.
The Stoxx Europe 600 was 0.3% higher midmorning, bouncing back
from early losses. The turnaround came after manufacturing activity
figures for the eurozone were revised higher, meaning the sector
grew more quickly in March than initially estimated.
The data are the latest signal that a modest recovery is taking
hold in the euro area, which has left investors bullish on European
stocks despite a huge first-quarter rally. The onset of European
Central Bank quantitative easing has been a further tailwind for
stocks, helping exporters and multinationals by weakening the
euro.
Still, the rally has paused in recent days, with the Stoxx 600
falling 0.6% on Tuesday amid worries over Greece's negotiations
with its creditors and a slide in oil prices that weighed down
energy stocks.
"The retreat should not sour the mood of eurozone investors too
much, given the scale of the gains over the last three months,"
said Ian Williams, economist and strategist at brokerage Peel
Hunt.
Germany's DAX was 0.3% higher Wednesday, France's CAC 40 rose
0.6% and the U.K.'s FTSE 100 advanced 0.5%.
U.S. stock futures pointed to a 0.4% opening loss for the
S&P 500, after Tuesday's 0.9% slide.
In currency markets, the euro was little-changed against the
dollar at $1.0747. The single currency had fallen sharply against
the buck on Tuesday, but still remains well above last month's
12-year low of under $1.05.
In commodities markets, oil extended Tuesday's slide as
investors continued to eye nuclear talks between Iran and six world
powers which could raise the chance of increased Iranian oil
exports.
Brent crude was down 0.2% at $54.97 a barrel. Gold was 0.2%
higher at $1,185.60 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com