European shares rebound from 4-day rout as carmakers rally

(iStock)
(iStock)

Frankfurt - European stocks rose as automakers gained and investors assessed valuations after the region’s equity benchmark posted a four-day losing streak.

Auto-related companies recorded the best performance of the 19 industry groups on the Stoxx Europe 600 Index. Rio Tinto Group and BHP Billiton dragged a gauge of miners to its lowest level since October 2003 as commodity prices slipped.

A measure of energy stocks slid as oil extended declines from the lowest close in more than 12 years.

The Stoxx 600 rose 0.4% to 341.48 at 8:23 a.m. in London. The European equity benchmark ended a volatile session yesterday at its lowest level since September. Germany’s DAX Index, which relies heavily on exporters including carmakers, recovered 0.6% today, paring its loss this year to 8%.

Among stocks moving on corporate news, Debenhams jumped 16% after the British retailer reported 19-week holiday sales that exceeded analysts’ projections. Wm Morrison Supermarkets rose 12% as the supermarket chain unexpectedly snapped a four-year record of declining sales.

Michael Page International Plc dropped 5.1% after saying profit growth slowed at its UK unit.

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