* FTSEurofirst 300 up 0.2 pct, near earlier 5-year peaks
* DAX hits new record high
* Aggreko and Assa Abloy rise on solid earnings updates
By Sudip Kar-Gupta
LONDON, Oct 28 A key pan-European equity index
climbed back towards a 5-year peak on Monday, while Germany's
DAX touched a fresh record high, as solid corporate
earnings lifted regional stock markets.
The pan-European FTSEurofirst 300 index rose 0.2
percent to 1,287.52 points in early session trade, close to a
5-year high of 1,291.93 points.
The euro zone's blue-chip Euro STOXX 50 index
advanced by 0.2 percent to 3,040.19 points while the German DAX
also rose by as much as 0.4 percent to touch a new record high
of 9,017.95 points.
"We have seen some strong performance from European equities
over the summer, but would argue there is more to come," said
Schroders' European equities fund manager Martin Skanberg.
Power company Aggreko topped the FTSEurofirst 300's
leaderboard with a 4.3 percent rise after reporting that
underlying revenues and trading margins in the three months to
the end of September were up from the same period a year ago.
Lock maker Assa Abloy also rose by 3.1 percent
after posting third quarter earnings ahead of market forecasts.
Tim Gregory, head of global equities at Psigma Investment
Management, said robust results from leading European companies
would continue to support European equity markets.
According to data from Thomson Reuters StarMine, 53 percent
of the companies on the pan-European STOXX 600 index
have beaten or met market expectations with their third quarter
earnings updates so far.
Schroders' fund manager Skanberg also said that the fact
that some global investors remained relatively "underweight" on
European equities, compared to U.S. or Japanese equities, could
give another boost to European shares as those investors looked
to increase their allocations to the region.
"While there has been greater investor enthusiasm for the
asset class recently, net inflows into European equities only
really began to increase in July 2013," said Skanberg.
"Allocations to Europe remain low, with European Union
equities still an underweight in many portfolios. This should be
supportive for flows into Europe as and when quantitative easing
ends in the U.S.," he added.
The FTSEurofirst 300 is up 13 percent since the start of
2013, while Germany's DAX has risen 18 percent.