Europe midday: Equities advance as Greek unemployment eases
European equities advanced as Greek unemployment eased and the nation met the deadline for its latest debt repayment.
Greece’s jobless rate fell to 25.4% in February from a downwardly revised 25.6% the previous month, according to ELSTAT.
It marked the lowest since July 2012 when unemployment was at 25.3% and came as Greece made its €200m repayment to the International Monetary Fund amid negotiations with creditors to unlock further aid.
The euro rose 0.39% to $1.1229 at 11:58 London time.
Analysts expect that the European Central Bank will offer more help with an increase in emergency liquidity assistance when the monetary authority meets to review the programme.
Elsewhere in Europe, services data impressed, as Markit's purchasing managers’ index (PMI) on services was revised upwards to 54.1 in April from an earlier estimate of 53.7, surprising analysts who had expected an unchanged figure. A reading above 50 signals expansion in the sector while a level below indicates a contraction.
Further afield there was cause for further concern about the slowdown in the world’s second largest economy as Chinese services PMI rose to a four-month high of 52.9, up from 52.3 in March but slightly below expectations.
UK services PMI rose to 59.5 in April from 58.9 a month earlier, more than the 58.5 predicted by analysts.
The US ADP monthly payrolls report will be released later in the day, with analysts estimating that jobs increased by 200,000 in April. It comes ahead of Friday’s official non-farm payroll report.
Societe Generale slides
Societe Generale declined despite reporting a better-than-expected increase in net profit, as the French bank bounced back from heavy losses in Russia.
Allianz SE rallied after the European insurer posted an 11% increase in first-quarter profit.
Anheuser-Busch InBev NV jumped after the brewer reported revenue growth that exceeded analysts’ estimates.
Vestas Wind Systems A/S surged after raising its forecast for sales and income for the year.
Brent crude climbed 2.1% to $69 per barrel, according to the ICE.