3-Jan-2012 - German Stocks Lead Push Higher

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By BARBARA KOLLMEYER German stocks led a push higher for European stock markets on Monday, boosted by a slightly better-than-expected purchasing-managers index. The Stoxx Europe 600 index was up 0.5% at 245.63 in the first day of trading of 2012. The index closed out 2011 with a 11.3% loss, the first yearly loss in three years and the worst annual performance since 2008. The push higher was led by the German DAX 30 index, up 1.6% to 5,993.73. A wide swath of stocks contributed to that gain, with heavyweight drug group Bayer AG up 1.7% and chemicals group BASF SE up 1.6%. The Markit/BME Germany Manufacturing purchasing managers index wholesale nba jerseys rose to 48.4 in December from 47.9 in November. That final number was up from an earlier estimate of 48.1, and better than the consensus estimate of 48.1 compiled by FactSet Research. "German PMI were marginally stronger than expected, and anything better-than-expected in current market sentiment will lead risk appetite back in markets," said Christian Tegllund Blaabjerg, chief economist at FIH Erhvervsbank, in emailed comments. And "with low liquidity you have a stronger reaction than usual in equity markets." The absence of liquidity in markets for Monday reflects the absence of the U.K., which is closed for a bank holiday, and the U.S. markets, which are shut in observance of the New Year holiday. But once markets return in full on Tuesday, Mr. Blaabjerg said, there really isn't much pointing to "a light at the end of the tunnel" for Europe, and European stocks could face renewed pressure,. "The U.S., however, is a whole different case. I am betting my silver dollar on the U.S. growth outlook in 2012 -- the housing market has bottomed out, and once this happens the U.S. is coming back strongly," he said. The Markit euro-zone purchasing-managers index rose in December to 46.9 from a 28-month low of 46.4 in November, confirming a previous estimate. Italian stocks were also pushing higher, with the Italy FTSE MIB index up 1.2% to 15,269.78. The market was led by a 2.5% rise for insurer Assicurazioni Generali SpA and a 2% rise for automaker Fiat SpA. The French CAC 40 index rose 0.7% to 3,183.17, with BNP Paribas SA up 1.6% and luxury-goods nba jerseys from china group LVMH Moet Hennessy Louis Vuitton SA up 1%. Write to Barbara Kollmeyer at Barbara.Kollmeyer@dowjones.com

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