German Market Rises After Manufacturing Grows Faster Than Estimated

(RTTNews) - The German market was firmly in positive territory on Wednesday, after Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands.

Final data from Markit Economics showed that the Purchasing Mangers' Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.

German manufacturing growth in March was faster than estimated earlier, marking the strongest improvement in eleven months, survey data from Markit Economics showed Wednesday.

The Markit/BME Germany Manufacturing Purchasing Managers' Index climbed to 52.8 from 51.1 in February. The flash reading, released on March 24, for the index was 52.4.

The French manufacturing sector continued to contract in March but at a slower than initially estimated pace. The PMI came in at 48.8 in March, up from 47.6 in February. The flash score was 48.2.

British manufacturing sector expanded at the fastest pace in eight months during March on stronger growth in production and new orders that led to increased hiring, survey results from Markit Economics and the Chartered Institute of Procurement & Supply showed.

The Markit/CIPS Purchasing Managers' Index rose to 54.4 from 54 in February, which was revised down from 54.1. The latest reading was in line with economists' expectations.

China's manufacturing sector slipped into contraction in March, with a PMI score of 49.6, the latest report from HSBC showed. That was higher than the preliminary reading of 49.2, although it was down from 50.7 in February.

Meanwhile, after failing to reach an initial deal with its EU/IMF lenders yesterday, Greece now faces the prospect of running out of money to make its state wage and pension payments before the end of April.

The Euro Stoxx 50 index of eurozone bluechip stocks was adding 0.61 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, was gaining 0.51 percent.

The DAX index added just over 1 percent.

Steel maker ThyssenKrupp climbed 3.2 percent. Societe Generale raised the stock to "Buy" from "Hold." Peer Salzgitter climbed 4.1 percent.

Commerzbank and Deutsche Bank added 2.1 percent and 1.4 percent, respectively.

Heidelberg Cement was up 1.2 percent, after HSBC raised the stock to "Hold" from "Underweight."

Other markets in the region also rose.

The Asian stocks ended mixed, with the Chinese shares hitting fresh seven-year highs on hopes for further stimulus, while Japanese shares succumbed to selling pressure in the wake of a firmer yen.

In the U.S., futures point to a lower open on Wall Street. In the previous session, the Dow dropped 1.1 percent, while the tech-heavy Nasdaq and the S&P 500 slid about 0.9 percent each.

Crude for May delivery fell $0.47 to $47.13 per barrel, while gold fell $1.4 to $1181.8 a troy ounce.