Draghi not expected to rock policy boat at Jackson Hole
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European stocks pushed higher Wednesday, with stocks continuing to recover after the flare-up in tensions between the U.S. and North Korea and big exporters getting a boost from a weaker euro.
The Stoxx Europe 600 index picked up 0.7% to close at 379.09, logging a third straight day of gains.
"Over the past couple of days we've seen a decent rebound in equity markets as risky assets start to regain some of their attraction, as concerns about tensions in North Korea show signs of settling down a little," wrote Michael Hewson, chief market analyst at CMC Markets.
"In spite of the recent rebound we still remain below the levels we were sitting at a week ago, which suggests that a certain degree of caution still remains," he said.
Stock movers: Fiat Chrysler (FCA.MI) (FCA.MI) ended up 2.6%, building on an 8.2% advance from Monday following an Automotive News report (http://www.autonews.com/article/20170814/OEM/170819914/chinese-automakers-covet-fca) that several Chinese auto makers are considering a bid for the Italian-American vehicle maker. Fiat shares didn't trade Tuesday as trading in Italy was closed for a holiday.
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In other Fiat news on Wednesday, the car maker said it is joining a consortium led by BMW (http://www.marketwatch.com/story/fiat-chrysler-joins-bmw-led-self-driving-car-group-2017-08-16)(BMW.XE) to develop self-driving cars technology. BMW shares rose 0.2% in Frankfurt.
Balfour Beatty PLC (BBY.LN) shot up 6.4%, the top gainer on the Stoxx 600, after the U.K. -based construction company swung to a half-year pretax profit (http://www.marketwatch.com/story/balfour-beatty-swings-to-pretax-profit-2017-08-16).
Miners were also among biggest advances, rising alongside a jump in zinc and copper prices. Copper futures were up nearly 3% and zinc futures surpassed $3,000 a metric ton for the first time since 2007.
That helped the Stoxx Europe 600 basic resources index gain 2.5% for its one-day percentage jump since July 25.
Admiral Group PLC (ADM.LN) tumbled 6.6% as the insurer's first-half profit increased but the company did see an impact from the higher cost of personal injury claims.
"Most of the adverse impact from the increase in the costs of large injury claims, resulting from the change in the Ogden discount rate, was captured in our 2016 second half result. However, some extra costs carry into 2017," Admiral said in its earnings report.
Carlsberg AS shares (CARL-A.KO) (CARL-A.KO) fell 2.7% as the Danish brewer's half-year revenue of 31.77 billion kroner came in below estimates of 32.29 billion kroner (http://www.marketwatch.com/story/carlsberg-operating-profit-rises-20-2017-08-16).
Indexes: Germany's DAX 30 index rose 0.7% to 12,263.86, with the export-heavy benchmark getting a boost from a weaker euro.
The shared currency was buying $1.1695, down from $1.1736 late Tuesday in New York. The shared currency hit an intraday low of $1.1692 after a Reuters report (https://uk.reuters.com/article/uk-ecb-policy-draghi-idUKKCN1AW0LL) that European Central Bank President Mario Draghi won't deliver a fresh policy message at the Federal Reserve's Jackson Hole conference next week.
Read:Euro slides after ECB hints at no hawkish shift at Jackson Hole (http://www.marketwatch.com/story/euro-slides-after-ecb-hints-at-no-hawkish-shift-at-jackson-hole-2017-08-16)
Also read:The pound is 'extremely undervalued' right now, according to UBS (http://www.marketwatch.com/story/the-pound-is-extremely-undervalued-right-now-according-to-ubs-2017-08-16)
France's CAC 40 index ended 0.7% higher at 5,176.61, while the U.K.'s FTSE 100 index climbed 0.7% to 7,433.03.
Minutes from the Fed's latest policy meeting (http://www.marketwatch.com/story/dollar-steady-ahead-of-fed-minutes-pound-firms-after-jobless-data-2017-08-16) will be released at 7 p.m. London time, or 2 p.m. Eastern Time.
(END) Dow Jones Newswires
August 16, 2017 11:52 ET (15:52 GMT)