European Stocks Pare Increase as Banks, Insurers Fall

By Sarah Jones 

European stocks pared their advance as banks and insurance companies declined.

National Bank of Greece SA (ETE) lost 9 percent as regulators put its merger with Eurobank Ergasias SA on hold. Banco Espirito Santo SA, Portugal’s largest publicly traded lender, fell 4.1 percent after a court blocked part of the government’s deficit- reduction plan. Lundin Petroleum AB rallied the most in six weeks after discovering oil in the North Sea. The Stoxx Europe 600 Index (SXXP) rose 0.2 percent to 287.8 at 2:56 p.m. in London, after earlier climbing as much as 0.7 percent. The gauge slid 2.3 percent last week as U.S. jobs data signaled the rebound in the world’s largest economy has slowed. The measure had still advanced 2.9 percent this year as central banks maintained stimulus measures.

“I am still bullish,” said Kevin Lilley, a fund manager at Old Mutual Asset Managers U.K. in London, which oversees about 4 billion pounds ($6.2 billion). “With the economic data that has been weaker, I will need to moderate that view a little bit, but I still think it’s right to have a cyclically-biased portfolio.”

National benchmark indexes climbed in 12 of 18 markets in western Europe today. France’s CAC 40 added 0.2 percent and the U.K.’s FTSE 100 advanced 0.3 percent. Germany’s DAX fell less than 0.1 percent.

The volume of shares changing hands in Stoxx 600 companies today was 26 percent less than the average over the past 30 days, according to data compiled by Bloomberg, as investors waited for Alcoa Inc. to kick off the U.S. earnings season after the close of New York markets.

Profits at companies in the Standard & Poor’s 500 Index are forecast to contract 1.8 percent in the first quarter, the first year-on-year decline since 2009, analysts’ estimates compiled by Bloomberg show.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

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