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Euro zone shares rise to outperform weaker UK market

Published 10/08/2015, 08:38 pm
Updated 10/08/2015, 08:46 pm
© Reuters.  Euro zone shares rise to outperform weaker UK market
UK100
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FCHI
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DE40
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ALVG
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BNPP
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BAMI
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FCHI
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STX50EEX
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FTEU3
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SXEP
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SXPP
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* Euro STOXX 50, DAX and CAC all slightly higher

* FTSEurofirst down, mainly due to drop in FTSE

* Banco Popolare and Allianz rise

* Commodity stocks impacted by weak China data

By Sudip Kar-Gupta

LONDON, Aug 10 (Reuters) - Euro zone stock markets advanced on Monday, as a rise in some major financial shares offset the impact of weaker commodity stocks weighing on the British market.

The euro zone's blue-chip Euro STOXX 50 index .STOXX50E edged up by 0.2 percent, while Germany's DAX .GDAXI and France's CAC .FCHI indexes both nudged higher by 0.1 percent.

However, the broader, pan-European FTSEurofirst 300 index .FTEU3 slipped 0.2 percent, reflecting the impact of a 0.9 percent decline in Britain's FTSE 100 .FTSE market.

Oil .SXEP and mining stocks .SXPP fell after economic data over the weekend from China, which is a major energy and metals consumer, showed another heavy fall in factory-gate prices and a surprise slump in exports.

However, some financial stocks fared better to lend support to euro zone equity markets.

German insurer Allianz ALVG.DE rose 1.7 percent after price target upgrades from JP Morgan, Berenberg and Exane BNP Paribas (PARIS:BNPP).

Shares in Italy's Banco Popolare BAPO.MI also climbed 3.4 percent after the company reported a rise in profits late on Friday.

"The continental European markets look a lot better than the UK at the moment. I would favour the Euro STOXX over the FTSE," said Andreas Clenow, hedge fund manager and principal at ACIES Asset Management.

The Euro STOXX 50 is up around 16 percent since the start of 2015, while the FTSEurofirst is also up by a similar amount.

Germany's DAX is up around 17 percent since the start of the year, although it is some 7 percent below a record high reached in April.

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