- China optimism, Japan corporate tax cut helping equities
- Miners lead gains as all Stoxx 600 industry groups rise
Not since a week before the China-fueled global rout have European stocks posted such a long streak of gains.
The Stoxx Europe 600 Index tracked gains in Asian equities as optimism grew China’s market turmoil will be contained and Japan’s prime minister said he’ll lower corporate taxes next year. Concern about a slowdown in China and an impending U.S. rate increase last month triggered the worst drop since 2011 for European shares and seeped into the early days of September.
“This is not just a rebound after the battering -- it’s people going back to the basic fundamentals and realizing that things actually still look pretty good,” said Yogi Dewan, founder of Hassium Asset Management in Gerrards Cross, U.K. “The world can probably live through an even bigger crisis in China. I was really encouraged today by the news in Japan. Reducing corporation tax is a really big deal and is very supportive.”
The Stoxx 600 advanced 1.3 percent at the close of trading, trimming intraday gains of as much as 2.6 percent. All 19 industry groups rose, with miners up the most. Glencore Plc and Anglo American Plc rallied more than 4.8 percent.
Ryanair Holdings Plc jumped 4.9 percent after raising its full-year profit forecast by 25 percent. Hargreaves Lansdown Plc advanced 7 percent after reporting an increase in client assets.
Com Hem AB climbed 5.2 percent after people familiar with the matter said Denmark’s TDC A/S has held recent talks to buy Swedish cable company. Transocean Ltd. rallied 7.7 percent after forecasting a “very healthy position” by 2017 and saying it’s looking at acquisitions.
GlaxoSmithKline Plc slid 1.2 percent. The company’s asthma medicine Breo Ellipta didn’t extend lives in a study that sought to show the drug could help those suffering from both lung and heart disease.