August 21, 2014 / 9:10 AM / 3 years ago

Germany's DAX climbs to 3-week high, European shares up

* DAX up 0.5 pct, FTSEurofirst 300 up 0.4 pct
    * Germany's private sector grows for 16th month in Aug.
    * Miners down after disappointing China data

    By Atul Prakash
    LONDON, Aug 21 (Reuters) - European shares rose on Thursday,
with Germany's DAX index climbing to a three-week high
after a survey showed the country's private sector grew for the
16th month running in August.
    The DAX rose 0.5 percent to 9,355.57 points by 0826 GMT
after the PMI survey raised expectations that Europe's largest
economy could expand robustly in the third quarter after it
suffered a surprise contraction in the second.
    "It's a relief rally. There were concerns that the German
economy was going to suffer because of Ukraine-related issues,
but today's data shows that the economy is going to keep on
growing," Koen De Leus, senior economist at KBC, said.
    Austria's Raiffeisen Bank International rose 5
percent, the top gainer in the FTSEurofirst 300 index, 
after saying it expected "no significant impact" from western
sanctions against Russia, underscoring its commitment to its
single most profitable market. 
    The broader European stock market gained, with the
FTSEurofirst 300 index of top European shares rising 0.4 percent
to 1,351.63 points.
    Miners lost some ground after disappointing manufacturing
data from China, the world's biggest metals consumer.
    The STOXX Europe 600 Basic Resources index fell 0.4
percent, the biggest sectoral decliner in Europe, after the
HSBC/Markit Flash China Manufacturing Purchasing Managers' Index
(PMI) fell to 50.3 in August from July's 18-month high of 51.7,
badly missing a Reuters forecast of 51.5. 
    Miners Rio Tinto, BHP Billiton and
Antofagasta dropped 0.3 to 0.6 percent.
    Investors' focus is shifting to the annual meeting of top
central bankers in Jackson Hole from Thursday through Saturday.
Federal Reserve Chair Janet Yellen is expected to acknowledge
that while U.S. data has generally been supportive, she remains
concerned about slack in the labor market. She will speak on
    Minutes from the Fed's July 29-30 meeting showed late on
Wednesday that most Fed officials wanted more evidence before
changing their view on when rates should rise. 
    On the European earnings front, the picture was mixed. 
    Dutch supermarket group Ahold reported
weaker-than-expected operating profit for the second quarter,
while Swiss dental implant maker Nobel Biocare's net
profit almost doubled.  
    Ahold shares fell 2 percent and Nobel Biocare was up 2.1
    Europe bourses in 2014:
    Asset performance in 2014:
    Today's European research round-up 

 (editing by John Stonestreet)

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