By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stock markets finished the last
trading day of 2013 on a positive note, and posted a 17% gain for
the year, which was the biggest annual rise since 2009.
The Stoxx Europe 600 index rose 0.3% to 328.01 on Tuesday,
closing out the year with a gain of 17.3%. Many exchanges, such as
Germany's, closed the day prior. The German DAX 30 index gained 25%
in 2013, which made it the best-performing European regional index
among the major countries.
London's FTSE 100 index closed Tuesday's trade with a 0.3% to
gain at 6,749.09. For 2013, the index rose 14%. The session itself
was dinged by losses for retailers. Away from the main index,
shares of Debenhams PLC slid 12% after the department store chain
said group sales and profit over the key Christmas trading period
was hit by "highly promotional" activity in the sector. It warned
that first-half pretax profit will be around 85 million pounds
($140.03 million), down from GBP114.7 million in the first half of
fiscal 2013.
Other retailers fell on the heels of losses for Debenhams, with
Marks & Spencer Group PLC losing 2.3% and J. Sainsbury PLC
falling 1.6%. Wm Morrison Supermarkets PLC slid 1%.
Mining stocks, which were among the worst-performers for 2013
for both the FTSE 100 and the Stoxx Europe 600, declined again on
Tuesday. Gold (GCG4) and silver (SIH4) prices are set to post their
worst year losses in at least 30 years.
In general, perceptions that the European economy is making
improvements and easy money policies have lured investors back into
the region's stocks. Some money managers have gone as far as to say
they prefer Europe stocks over Wall Street. A net 43% of managers
polled in the most recent Bank of America Merrill Lynch fund
manager survey said they're overweight Europe equities, versus just
7% for U.S. stocks.
Europe was the most preferred region for the fourth straight
month in that survey out Dec. 17. But Europe gains have also come
in march step with a rally for Wall Street. The S&P 500 index
(SPX) is set to finish 2013 with a 29% gain.
Among other indexes, the CAC 40 finished on a stronger note, up
0.5% to 4,294.95, posting a nearly 18% gain for 2013. The last
session of the year was helped by gains for heavyweight Sanofi SA
(SNY), which rose 1.1%, reversing some losses seen on Monday's
session. The drugmaker's Genzyme unit said a day prior that it will
appeal a decision by the Food and Drug Administration to reject its
multiple-sclerosis treatment Lemtrada.
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