European stocks rise, shrug off U.S. shutdown

MarketWatch, (2/10) LONDON — European stock markets rose Tuesday, rebounding from the biggest decline in a month, as investors weighed the consequences of a government shutdown in the U.S. ahead of a coming debate about lifting the country’s debt limit. The Stoxx Europe 600 index added 0.8% to 312.86, recovering from a 0.6% loss on Monday. Shares of Telecom Italia SpA jumped 5.2% after Goldman Sachs reinstated coverage of the firm with a buy rating. “We believe the proposed changes to TI’s controlling shareholder structure may provide it an opportunity to delever its balance sheet, which could lead to a significant positive change in strategy,” Goldman Sachs said. Shares of Renault SA added 1.7% after data showed new French car registrations for the auto maker jumped 18% in September. Data confirmed that the euro zone’s manufacturing sector expanded for a third straight month in September, with the purchasing managers’ index in line with a preliminary estimate of 51.1, but lower than the 51.4 August print. A reading above 50 signals expansion. Eurostat said unemployment in the currency union edged lower for a third straight month in August, although not enough to affect the overall unemployment rate, which held steady at 12%. The July joblessness rate was revised lower after previously being reported at 12.1%, which means the 12% rate was the lowest since December 2012. Germany’s unemployment unexpectedly rose to 6.9% in September.