Europe Stocks Rebound From Four-Day Loss as Dialog Jumps 

European stocks rose, rebounding from a four-day losing streak, as investors awaited data to assess the health of the U.S. economy. U.S. index futures were little changed, while Asian shares advanced.

Dialog Semiconductor Plc and AMS AG climbed more than 6 percent each after the two chipmakers said they are exploring a merger. Fresenius Medical Care AG added 1.3 percent as Credit Suisse Group AG recommended buying the stock. Bwin.Party Digital Entertainment Plc rose 3.6 percent after people familiar with the matter said it is considering selling some or all of itself as part of a strategic review. Barclays Plc, which was sued in New York over its private trading venue, slipped 3.4 percent.

The Stoxx Europe 600 Index advanced 0.2 percent to 342.61 at 8:06 a.m. in London. The gauge had dropped 1.8 percent in the past four days, the longest losing streak in seven weeks, as investors weighed violence in Iraq, and economic data showed euro-area manufacturing weakened, the U.S. economy contracted in the first quarter by the most since 2009, while German business confidence dropped to the lowest level in 2014.

Standard & Poor’s 500 Index futures fell less than 0.1 percent today, while the MSCI Asia Pacific Index increased 0.7 percent. Europe’s equity benchmark is trading at 15.3 times the projected earnings of its members, down from a multiple of 15.6 times earnings on June 10 that was its highest valuation since the end of 2009.

U.S. Data

A Commerce Department report at 8:30 a.m. in Washington may show U.S. personal spending rebounded in May, after declining for the first time in a year the previous month, according to a Bloomberg survey. Data from the Labor Department at the same time will show fewer Americans filed for unemployment benefits last week, economists projected.

In the U.K., the Bank of England publishes recommendations from the June 17 meeting of its Financial Policy Committee, which may include measures to cool the housing market. Governor Mark Carney holds a press conference on the semi-annual Financial Stability Review from 10:30 a.m. in London.

Dialog Semiconductor rallied 7.8 percent to 25.94 euros and AMS gained 6.4 percent to 154.90 Swiss francs. The two companies confirmed they are in preliminary talks regarding a possible merger in a statement today.

Fresenius Medical advanced 1.3 percent to 48.05 euros. Credit Suisse raised its rating on the stock to outperform, similar to a buy recommendation, from neutral, with analyst Christoph Gretler citing its current valuation. The stock lost 12 percent in the year through yesterday, trailing the 24 percent gain for a gauge of healthcare companies listed on the Stoxx 600.

Bwin.Party Gains

Bwin.Party, which has slumped 22 percent since June 10, rose 3.6 percent to 96 pence. The Gibraltar-based company hired Deutsche Bank AG to consider its options, said the people, who requested anonymity because the matter isn’t public. The company will decide within two months, one person said.

Barclays slipped 3.4 percent to 222.3 pence. The lender falsified marketing materials to hide how much high-frequency traders were buying and selling, according to a complaint filed yesterday by New York Attorney General Eric Schneiderman. Barclays runs one of Wall Street’s largest dark pools, a private trading venue where investors can trade stocks mostly anonymously.

 

Source: bloomberg

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