European Shares Extend Rebound

{{European shares extended their rebound on Friday from last month’s losses, helped by mining stocks, as long-term investors bet equities would continue to benefit from the region’s gradual economic recovery.}}

Equity markets briefly pared gains after worse-than-expected U.S. employment data, but then swiftly recovered as traders and investors said the longer-term outlook of a slow global economic pick-up remained intact.

The pan-European FTSEurofirst 300 index closed up 0.8 percent at 1,300.11 points, while the euro zone’s blue-chip Euro STOXX 50 index also advanced 0.9 percent to 3,038.49 points.

Europe has shown signs of slowly recovering from the effects of the euro zone’s sovereign debt crisis from 2011-2012, and steelmaker ArcelorMittal on Friday forecast that an increase in European iron ore production would lead to higher profits this year.

ArcelorMittal’s upbeat outlook boosted mining companies, with the STOXX Europe 600 Basic Resources Index – which contains major mining stocks – outperforming the broader market rise with a 1.6 percent gain.

According to Thomson Reuters analysis, out of the 70 companies on the pan-European STOXX 600 index to have reported fourth-quarter earnings so far, 51 percent have posted earnings above analyst estimates.

reuters