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Europe: Stocks bounce back from 3-day selloff on earnings boost
[PARIAS] European stocks rallied on Wednesday as earnings reports from Siemens AG and Volvo AG boosted industrial shares, while positive data from China and the US helped lift shares most sensitive to economic growth.
The Stoxx Europe 600 Index advanced 0.9 per cent at the close. The benchmark is rebounding after capping its worst three-day drop since the week before the US election amid investor jitters about some of President Donald Trump's decisions. The Euro Stoxx 50 Index of euro-area equities added 0.9 per cent on Wednesday, bouncing off its 50-day moving average, a key support level.
Volvo rose 4.7 per cent after its fourth-quarter truck orders jumped and earnings beat estimates, while Siemens climbed 5.6 per cent after Europe's biggest engineering company raised its full-year outlook.
Data showed China's factory sector started the new year on a strong note, while a private report on US employment showed companies last month added the most workers to payrolls since June.
Stoxx 600 miners added 1.6 per cent, after their biggest two-day drop since November. Carmakers and banks also advanced.
Investors' focus will later turn to the US Federal Reserve policy decision, with officials expected to keep rates on hold as they weigh the economic outlook and assess how the new president's policies will influence jobs and inflation.