Short-covering helps European shares shrug off PMI data

Shutterstock photo

MILAN/LONDON, April 18 (Reuters) - European shares rose tofresh eight-month highs on Thursday as short covering kicked inand a weaker euro helped investors shrug off disappointing eurozone business activity surveys.

"There is so much pessimism around Europe that the negativePMI data failed to find fresh sellers, triggeringshort-covering," said Giuseppe Sersale, fund manager at AnthiliaCapital in Milan.

A survey of fund managers by Bank of America Merrill Lynch(BAML) found this week that short positioning on Europeanequities was the "most crowded trade" for the second straightmonth in April. urn:newsml:reuters.com:*:nL5N21Y1Q5

Businesses across the euro zone stumbled into the secondquarter as demand remained weak despite more modest price rises,surveys showed on Thursday. urn:newsml:reuters.com:*:nL5N2201Y9 (Reporting by Danilo Masoni, Thyagaraju Adinarayan andJosephine Mason; editing by Josephine Mason) ((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))

This article appears in: Politics , US Markets , Stocks
Referenced Symbols: IBEX

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?