European equity markets today have printed strong return

European equity markets today have printed strong returns consistent with the positive sentiment implied into prices by China manufacturing data. The news came as a large gasp of air for a market that had become notably bearish on Chinese-linked assets of late. Mining stocks unsurprisingly outperformed by adding as much as 4 per cent into the close. Rio Tinto and Anglo American closed 4.19 per cent and 3.89 per cent higher respectively.

The disparity between gold and silver has been illustrated well, as indeed gold failed investors earlier as prices reflected improving sentiment over Syria where silver jumped on China data. This price action further supports silver’s manufacturing applications against gold’s few, something to note when picking a metal to own when facing geopolitical risks.

Risers:

Rio Tinto
Shares in Rio react positively after they announced they have begun shipping iron order from its newly expanded port, rail and mine facilities in Western Australia. The first 165,000-metric-ton shipment is bound for Nippon Steel & Sumitomo Metal Corp.'s Kimitsu plant in Tokyo, said Rio Tinto, which has boosted annual capacity at its Australian operations to 290 million tons. Mining sector in general doing well after Chinese manufacturing data showed manufacturing rose to a 16-month high.

Vodafone Group
Vodafone shares up another 3 percent as they await Verizon wireless sale which could be announced later today. Developments over the weekend have shown the board of Vodafone have approved in principle a deal to see its 45% stake in Verizon Wireless to Verizon Communications.

Inmarsat
Morgan Stanley upgrades Inmarsat to overweight from equalweight and raises price target to 820p from 740p. Says the market is ascribing minimal value to Inmarsat's US spectrum asset even after DISH Network Corp's $2.2 billion bid for LightSquared. The bank also says the company's core business outlook is improving, with pricing power in Maritime stronger-than-expected

Seeing Machines
The face and eye tracking technology said it has received orders from BHP Billiton Iron Ore for its Driver State System fatigue and distraction monitoring solutions for Mining Area C and Eastern Ridge, two of its Pilbara mines in Australia. The value of these deployments is over 1.5 million Australian dollars.

Sula Iron & Gold
The multi commodity exploration company focused on Sierra Leone, have announced they have completed a 2,000 meter drilling program targeting iron mineralization and further positive assay results at its 153 square kilometres Blue Horizon license area, which is prospective for iron and gold.


Fallers:

Fresnillo
UBS downgrades Fresnillo to neutral from buy with unchanged target of 1250p. "After a 27% rally in August, outperforming silver +17% and gold +7%, Fresnillo's valuation looks less attractive to us," it says. Still the company's low cost position, growth profile, low corporate governance and country risk and strong balance sheet look appealing, it says.

Bwin.Party Digital
Bwin.Party Digital Entertainment had its rating cut by Morgan Stanley to equalweight from overweight, and cuts its price target to 140p from 180p. Sees potential for a compelling turnaround, and sees the launch into the U.S. as a free option at today's price. "However, declining revenues in all products and countries has undermined our confidence, and marketing cuts could exacerbate this. We see little to drive the shares," says Morgan Stanley

Strategic Natural Resources
Strategic Natural Resources posts a widened loss during the sixteen months ended June 30, adding that exclusive discussions with an international coal trader is at an advanced stage with regard to a potential strategic investment in the Company. The South African miner expects its first export shipment to leave port within the next week