Azernews.Az

By Bloomberg

European stocks climbed after data showed euro-area business activity expanded faster than forecast.

The Stoxx Europe 600 Index rose 0.4 percent to 402.66 at 10:13 a.m. in London, erasing a decline of as much as 0.5 percent. Energy companies pared losses as oil reversed a drop to advance for a third day.

Composite gauges for the manufacturing and services industries for Germany and France were both above the 50-point mark that divides expansion from contraction, according to Markit Economics. For Germany, the index advanced to 55.3 in March from 53.8 in February, marking a 23rd straight month of growth. It slipped to 51.7 from 52.2 in France.

“Even though in Europe you have mixed figures about the PMI in France, the PMI in Germany came in better than expected,” said Stephane Ekolo, chief European strategist at Market Securities in London. “It’s the locomotive of the euro- zone economy, it’s the best in class and we need to have a strong Germany.”

European shares have rallied 17 percent this year, with the Stoxx 600 closing at its highest level since 2000 at the end of last week as the European Central Bank started a quantitative- easing program and speculation increased that the Federal Reserve won’t rush to raise rates.