Azernews.Az

By Bloomberg

Stocks in Europe climbed to a three-week high after a European Central Bank official said it plans to increase bond buying in May and June.

The Stoxx Europe 600 Index added 1.5 percent to 403.85 at 1:44 p.m. in London. The ECB intends to buy more assets before an expected period of low liquidity in the summer, according to the text of a speech by Executive Board member Benoit Coeure. The Stoxx 600 rallied to a record in April amid quantitative- easing measures, before falling 4.3 percent through the end of last week.

“There were concerns that liquidity was drying up, and now we got the assurance we needed to stabilize markets,” said Michael Woischneck, who helps manage about $6.9 billion at Lampe Asset Management in Dusseldorf, Germany. “Whatever the ECB does, it will be enough. This will push the euro down again, support growth, and bring buyers back to Europe. Exporters, like carmakers, should benefit once more. I will have to do some buying now.”

Auto shares led gains on Tuesday, with Volkswagen AG and Renault SA rising at least 3.8 percent. A report showed European car sales increased for a 20th straight month in April. Elektrobit Oyj surged 20 percent after Continental AG agreed to buy its automotive-software business for 600 million euros ($680 million).

Shares extended an advance after data showed U.S. housing starts rose to a seven-year high in April, beating economists’ forecasts in a Bloomberg survey. Permits also increased at a faster rate than estimated.

Greek Deal

Greece’s ASE Index climbed 1.8 percent, extending Monday’s gains. Finance Minister Yanis Varoufakis told Star TV Channel his government is about one week away from an agreement that would unlock more aid from creditors.

Shares were active amid earnings reports and deal activity. Julius Baer Group Ltd. rose 1.2 percent after saying gross margin at the end of April increased from last year. DCC Plc rallied 11 percent after saying annual profit rose and offering to buy Butagaz for 464 million euros.

TomTom NV surged 10 percent after ING Groep NV said a bidding war for Nokia Oyj’s maps unit has a positive impact on the Dutch peer. South32 Ltd., the miner spun off from BHP Billiton Ltd., jumped 9 percent in London. Its Sydney trading debut yesterday fell short of estimates.

Vodafone Group Plc declined 2.8 percent after the lower end of its 2016 profit forecast missed the average analyst projection. Merck KGaA slipped 1.5 percent after the drugmaker reported quarterly earnings that trailed predictions.

Glencore Plc dropped 2.7 percent. A series of lock-ups on employee-owned shares expire May 24, after which executives can sell their holdings. Distribuidora Internacional de Alimentacion SA lost 3.2 percent after investors offered to sell an 8.5 percent stake in it.