European equities were trading higher on Tuesday morning buoyed by a rally among financial services stocks and an acceleration in the pace of growth in the European technology sector.
The latest batch of European Union (EU) Sector Purchasing Managers’ Index (PMI) data from research company Markit showed that a number of technology and finance-based sectors posted sharp and accelerated growth of activity in April.
Software and services climbed to the summit of Markit’s EU sector rankings on the back of the strongest rise in activity since August 2007. With hi-tech equipment also seeing solid growth, technology was the best-performing of the broad sectors monitored, the research company said. Financials were not far behind; real estate, banks and other financials placed second, fourth and sixth respectively out of Markit’s 22 detailed sectors.
In other macro-economic news, industrial production in Germany contracted by 1.3% in March when compared to the previous month, fresh data published by the nation’s statistics office destatis showed. This marked a bigger contraction than that recorded in February, when production slid by 0.7% on the previous month. German exports were worth EUR 107 billion ($121.62 billion) in March, separate data from destatis also showed, marking a 1.9% increase from the previous month and a 0.5% decline when compared to the corresponding month of the previous year.
In France, output decreased in the nation’s manufacturing industry, falling by 0.9% compared to the previous month, according to the French statistics agency INSEE.
And, in equities, Capita, a provider of customer and business process management services, was leading the gainers on London’s FTSE 100 Index, 5.7% higher after reporting that it had secured contracts with an aggregate value of GBP 458 million ($660.6m) to date in 2016 and saying that it is “on track to meet consensus expectations in 2016”.
Financial services provider Standard Chartered was up by 2.9%, high street bank Barclays was up by 2.6% and low-cost airline easyJet was 1.8% higher after posting a 0.3% increase in its total revenue for the six months ended March 31st to GBP 1.77 billion when compared to the prior six month period in 2015.
On Frankfurt’s DAX, Deutsche Bank was up by 3.7%, followed by car-maker Volkswagen, 2.3% higher and electricity and gas company RWE, 0.9% higher. Deutsche Lufthansa, an airline operator, was up by 1.6%. And, on Paris’ CAC-40, financial services provider Societe Generale was 3.0% higher, followed by car-maker Peugeot, up by 2.8% and hypermarket chain Carrefour, up by 2.7%. LVMH Moet Hennessy Louis Vuitton, a luxury goods retailer, was up by 2.5% higher.
London’s FTSE 100 was 0.49% higher, Frankfurt’s DAX was up by 0.57% and Paris’ CAC-40 was 0.62% higher at the time of writing
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