European stocks rise, Asia bounces back

Bloomberg

European stocks climbed, led by mining and bank shares, as lenders borrowed more than double what was forecast under the European Central Bank’s TLTRO program.
The Stoxx Europe 600 Index advanced 0.3 percent to 375.21 as of 11:31 a.m. London time, set to end three days of losses. European miners extended their gains to 0.9 percent, following metals prices higher, and the banks sector rose 0.6 percent. Lenders were allotted 233.5 billion euros in final round of Targeted Longer-Term Refinancing Operations, the ECB said.
US equities gained on Wednesday, before a possible procedural vote on a Republican health-care bill on Thursday.
The British Parliament returned to work, having been shut down on Wednesday after the London attack that had the
markings of terror.
With US stocks earlier this week experiencing their first pullback in more than four months, investors are increasingly comparing them to alternatives in Europe. The Stoxx 600 trades more cheaply, at about 1.8 times book value, and 15 times estimated earnings.
“Overweight UK & Switzerland, underweight Germany & France,” Deutsche Bank AG said in a note. “Improving macro momentum has been the key driver of the European equity market over the past eight months, leading cyclical country indexes, such as Germany and France, to outperform. We expect both to underperform going forward, as the recent surge in global growth momentum starts to fade.” Gemalto NV extended its losses, having slumped 17 percent Wednesday, after cutting its profit forecast.
IG Group Holding Plc, a global online trading company, fell as much as 6.8 percent after saying third-quarter revenue slipped from a year earlier, and that revenue per client dropped 15 percent. Scandic Hotels Group AB rose as much as 9 percent after news that Sunstorm Holding AB, controlled by EQT V Ltd and Accent Equity 2003, divested all of its stake.

Asia Stocks
Asian shares bounced back to unchanged Thursday morning, steadying after the worst decline in three months, as gains in financial and industrial stocks offset a drop in telecommunication companies.
The MSCI Asia Pacific Index was up a fraction at 147.43 at 4:47 p.m. in Hong Kong after earlier losing 0.3 percent. A gauge of telecommunication shares fell as China Mobile Ltd. slipped 3.4 percent after the company’s dividend announcement disappointed investors. Utilities and consumer staple stocks were the biggest boosts to the Asian stock gauge, which remains down about 0.6 percent on the week.
“The market has largely priced in earnings optimism,” said Hao Hong, chief strategist at Bocom International Holdings Co. in Hong Kong. “Stocks are running into resistance with US equities at a correction stage.”
Hong Kong’s benchmark indexes advanced as investors await earnings from China’s biggest energy firm and banks in the next week. Haier Electronics Group Co. jumped 13 percent in Hong Kong after profit beat analyst estimates. MSCI Inc. scaled down the universe of mainland Chinese A shares for possible inclusion in benchmark indexes under a new proposal.