WOS gains in London on US economic expansion

European equities markets saw gains Thursday after the US Commerce Department reported that the US economy grew by 3.3 percent in the second quarter of the year.

In London the FTSE 100 added 1.32 percent to 5,601.2 while the FTSE 250 gained 1.47 percent to 9,271.7.

With their biggest markets in the United States, building materials group Wolseley (LSE: WOS) was up 3 percent while household appliance components manufacturer Invensys (LSE: ISYS; OTC: IVNY) gained 3.6 percent.

Utilities, banks, and the real estate sector were all higher while house builder Taylor Wimpey (LSE: TW) added 10.36 percent and retailers were up, led by J Sainsbury’s (LSE: SBRY) gain of 7.92 percent.

Elsewhere in Europe, the FTSE Eurofirst 300 was up 1.44 percent to 1,190 as the Dax added 1.57 percent to 6,420.54, the IBEX was 1.59 percent higher to 11,662 and the CAC-40 gained 2.02 percent to 4,461.49.

Most banks were higher.

UBS (NYSE: UBS: SWX: UBSN; TYO: 8657) was up 4.6 percent and Credit Agricole (Euronext: ACA) added 8.9 percent even though profits were reported won 94 percent in the second quarter, but Natixis (Euronext: KN) dropped 3.9 percent on a net loss it its second quarter.

Most insurers were also higher, with Allianz (FWB: ALV; NYSE: AZ) up 3.89 percent as AXA (Euronext: CS; NYSE: AXA) added 5.36 percent but Swiss Life Holding (SWX: SLHN) dropped 8.8 percent on a profits warning.

Carmakers, the semiconductors sector and most banks saw gains.

Equities markets in the Asia-Pacific region were mixed Thursday as gains in commodities prices helped miners and the oil sector to gains but mobile phone service providers and the electronics sector declined on broker comment.

The Shanghai Composite was up 0.34 percent to 2,467.39 while in Australia the Sydney Ordinaries added 1.09 percent to 5,143.3 and the S&P/ASX200 gained 1.1 percent to 5,066.5.

On the other hand, the Straits Times Index was down 0.52 percent to 2,691 while the Taiex fell 0.67 percent to 7,033.37, the Kospi was 1.32 percent lower to 1,474.15, the Sensex was down 1.74 percent to 14,048.34 and the Hang Seng dropped 2.29 percent to 20,972.29.

Mobile phone operator China Mobile (SEHK: 0941; NYSE: CHL), which had added 3.5 percent on Wednesday, dropped 6.3 percent on the session after JPMorgan (NYSE: JPM; TYO: 8634) issued a downgrade from “overweight” to “underweight”, citing expansion by competitors.

Tokyo’s markets were mixed as well, with the Nikkei 225 up 0.12 percent to 12,768.25 as the Topix index fell 0.34 percent to 1,219.53 and the Mothers market of small and mid-caps dropped 0.72 percent to 456.22.

Consumer finance company Acom (TYO: 8572; OTC: ACMU) added 8.8 percent on a report that Mitsubishi UFJ (TYO: 8306; NYSE: MTU) will raise its stake in the lender from 15 percent to 40 percent.

Elsewhere in the sector, Promise (TYO: 8574), partially owned by Sumitomo Mitsui Financial Group (TYO: 8316), was 7.5 percent higher but Aiful (TYO: 8515), which is not supported by a major bank, dropped 8 percent on the session.

Shippers were lower on more declines in cargo fees, while real estate developers were lower again on a prediction of more bankruptcies in the sector.

Sumitomo Realty & Development (TYO: 8830) was down 2.5 percent and Mitsui Fudosan (TYO: 8801; NAS: MDSFF) fell 3.1 percent, while condominium builder Hoosiers Corp (TYO: 8907) dropped the maximum allowed 12 percent.

Wall Street was higher in early afternoon trade on the news that the US economy expanded more than had been anticipated in the second quarter.

The Dow Jones Industrial Average was up 1.42 percent to 11,665.68 while the Nasdaq Composite added 0.78 percent to 2,401.1 and the S&P 500 gained 0.93 percent to 1,293.55.

Jeweler Tiffany & Company (NYSE: TIF) added 8.7 percent on better than expected profits and an improved full-year outlook.

Banks were higher, with Wells Fargo (NYSE: WFC) up 3.63 percent while Citigroup (NYSE: C) was 3.75 percent higher and Bank of America (NSYE: BAC) had gained 4.15 percent.

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