Europe close: Stocks rally on Greek hopes, factory data

European stocks ended the session on a high note amid hopes of a deal on Greek debt and after manufacturing data in the Eurozone and China beat forecasts.

The Eurozone manufacturing purchasing managers’ index (PMI) for March was revised to 52.2 from 51.9, ahead of estimates of 52.4. A reading above 50 signals expansion while a level below indicates contraction.

HSBC’s final estimate on the Chinese PMI for manufacturing in March was revised to 49.6 from a previous estimate of 49.2, ahead of analysts’ forecasts of 49.3.

A separate measure of China manufacturing also showed an improvement in March. The China Federation of Logistics and Purchasing said the PMI rose to 50.1 last month from 49.9 in February, compared to the consensus of 49.3.

UK manufacturing PMI climbed to 54.4 in March from 54 a month earlier, as expected.

In the US, ISM’s manufacturing PMI fell to 51.5 in March from 52.9 in February, compared to forecasts for a reading of 52.5.

The US also saw the release of the ADP private payrolls report which showed employers added 189,000 jobs in March, missing expectations of 225,000. The data comes ahead of the all-important non-farm payrolls report on Friday.

Meanwhile, Greece remained on watch as economy minister George Stathakis told Skai TV he expects the nation to come to an agreement next week with Eurozone partners and the International Monetary Fund on a package of reforms that will unlock further aid.

Eurozone deputy finance ministers held a conference call about Greece on Wednesday.

The euro increased 0.31% to $1.0764 on hopes Greece was nearing a deal.

In commodities, Brent crude gained 3.4% to $57.06 per barrel, according to the ICE.

Companies

Asos advanced after reporting a positive outlook for the second half of the year.

Shawbrook Group was up on its first day of trading in London after raising £90m in its initial public offering.

Thyssenkrupp jumped after Societe Generale upgraded the stock to ‘buy’ from ‘hold’.

Barry Callebaut AG rallied after reporting first-half earnings that surpassed analysts’ predictions.

William Demant Holding A/S declined after UBS Group AG cut its rating on the stock to ‘sell’.

Neopost SA slumped after reporting full-year profit that fell short of market forecasts.