The Lexington Group reports positive GDP data in the European Region as well in France and Germany helped to boost earnings on Wednesday, while BOE minutes hurt the FTSE.
Aug. 15, 2013 - CHIYODA-KU, Japan -- European stocks gained for a fifth straight day with the Stoxx Europe 600 Index up 0.3% after the release of second quarter GDP data showing that Europe has emerged from a six quarter recession. Overall European gross domestic product rose 0.3% beating market expectations of 0.1% to 0.2%.
GDP growth also beat expectations in two of biggest economies in the Euro zone. In Germany GDP grew 0.7% where 0.6% was forecasted. In the first quarter in German there was flat growth. In France growth expanded by 0.5%, much higher than the forecasted 0.2%.
In the UK, the Bank of England said it would leave interest rates unchanged until the unemployment rate drops below 7%, which they do not expect to happen until 2016. But data from the UK Office for National Statistics suggests that the 7% level could be reached sooner than expected, which has worried investors.
The FTSE 100 index fell 0.4% to close at 6,587.43.
The day´s biggest gainer was Norwegian oil field services firm Subsea 7 SA, which jumped 8.5% after reporting a smaller than forecasted loss in the second quarter. The pest control and hygiene firm Rentokil Intial PLC rose 6.1% after reporting a 5.2% rise in first half of the year operating profit.
Mining firms were on the decline in the UK. Eurasian Natural Resources Corp. fell 3%, after cancelling its interim dividend due to a drop in first half of the year profits. Rio Tinto PLC fell 0.5%, Antofagasta PLC lost 0.8% and Anglo American PLC declined 0.4%.