(Reuters) – European stocks rallied for a third day as the global mood brightened on easing concerns about cash-strapped developer China Evergrande, while investors awaited the latest batch of business surveys.
The pan-European index rose 0.6% by 0709 GMT and was now set to end the week with solid gains.
Asian shares rose following Evergrande’s share price surge of 30% in Hong Kong as the chairman tried to reassure investors. The company had stated that it “resolved a coupon payment for an offshore bond” and Asian stock markets rose.
Evergrande’s Frankfurt listed shares fell 20.4%.
Investors are looking for information on policy and growth. IHS Markit’s September Business Surveys and Bank of England’s Monetary Policy Decision will be available later today.
Royal Mail (LON:) Plc gained 1.5% after it forecast a surge in first-half operating profit as it benefits from improving letter volumes and higher UK parcel revenues.
Faurecia, a French auto parts manufacturer rose 3.2% despite having to lower its 2021 financial goals due to the sharp decline in global automotive production. Rival Valeo (PA:) also gained 3%.
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